Lauder Pty Ltd v Angor Investments Pty Ltd and Anor (No 2)

Lauder Pty Ltd brought proceedings against Angor Investments Pty Ltd and another, seeking recovery of possession of land. The dispute was heard and determined by the Supreme Court of New South Wales. The primary legal issue before the court was determining the appropriate scale of costs to be applied given the successful outcome for the plaintiff. The court also considered whether the defendants' refusal to accept a settlement offer and their defense, which was not seriously arguable, warranted costs on an indemnity basis.

The court first addressed the applicable scale of costs, noting that the proceeding, though initially in the Supreme Court, should be assessed as if it had been in the District Court due to the nature of the claims and the simplicity of the legal issues involved. Regarding the indemnity costs, the court found that the defendants' refusal of a settlement offer and their defense, which lacked serious arguable merit, justified such an order. The court held that the defendants’ conduct was unreasonable and warranted costs on the indemnity basis, effective from a specific date when the defendants’ position became untenable.

The court's decision underscored the importance of the defendants' conduct in determining the costs order, particularly their refusal to accept a reasonable settlement offer and their defense strategy that was not genuinely arguable. The final order required the defendants to pay the plaintiff's costs, assessed on the District Court scale and on an indemnity basis from a particular date. This comprehensive order reflects the court's consideration of both the procedural history and the merits of the case.