Ko v Ckas Enterprises Pty Ltd (No 2)

In the matter of Ko v Ckas Enterprises Pty Ltd (No 2), the Federal Circuit and Family Court of Australia was tasked with deciding on the allocation of costs in a dispute between the parties. The central issue before the court was whether the costs of a cross-claim should be awarded against the party that had made an offer of compromise one day prior to the scheduled hearing. The offer of compromise was subsequently rejected, and the court had to determine whether the outcome of the cross-claim was better than the offer, and if the result could be reasonably characterised as a "draw."

The court found that although the outcome achieved was better than the offer of compromise, it was not the outcome either party had sought. The court reasoned that the result of the cross-claim was reasonably characterised as a "draw," given that neither party had achieved their desired outcome. The court also considered that the offer of compromise was made at a very late stage, one day before the hearing was due to commence, which was a significant factor in its decision. Ultimately, the court decided that the costs of the cross-claim should not be awarded against the party that had made the offer of compromise.

The court concluded that the costs of the cross-claim should be awarded to the party that achieved a better outcome than the offer of compromise. However, it also took into account the fact that the result was not the one either party had sought and was reasonably characterised as a "draw." The court emphasised that the costs should not be awarded against the party that made the offer of compromise, as the offer was made at a very late stage and did not result in the desired outcome for either party.