Kraissa v Hair Industrie Penrith Pty Ltd

In Kraissa v Hair Industrie Penrith Pty Ltd, the plaintiff sought to modify the costs order in an action that involved disputes over a contractual agreement for the sale of a business. The matter was heard in the Supreme Court of New South Wales. The plaintiff was successful in part, having abandoned a portion of their claim during the hearing. The defendants had previously made three offers of compromise, which the plaintiff had rejected, and they had also unsuccessfully applied for the plaintiff's case to be dismissed as having no case to answer.

The court was required to decide whether the costs order should be modified to take into account the rejected offers of compromise, the abandonment of part of the plaintiff's claim, and the unsuccessful 'no case' application by the defendants. The court considered the relevant principles and authorities governing costs orders in light of these circumstances, including the factors that might justify a departure from the usual costs-following-events rule.

The court found that the rejected offers of compromise did not warrant any adjustment to the costs order, as the offers were not made in a manner that complied with the relevant statutory provisions. The abandonment of part of the plaintiff's claim and the unsuccessful 'no case' application by the defendants were also considered, but the court concluded that these factors did not justify a significant modification to the costs order. The court acknowledged the defendants' unsuccessful application but determined that it did not warrant a substantial change in the costs order, as the plaintiff had ultimately succeeded in part. The court ultimately decided to make a minor adjustment to the costs order to reflect the particular circumstances of the case.

The court ordered that the defendants pay the plaintiff's costs of the proceedings, with a minor modification to reflect the specific circumstances identified. The modification involved a reduction in the amount of costs payable by the defendants, taking into account the partial success of the plaintiff and the factors considered by the court.