LCM Operations Pty Ltd v Rabah Enterprises Pty Ltd (No 3)

In this matter, LCM Operations Pty Ltd brought an action against Rabah Enterprises Pty Ltd, seeking $14.8 million in damages. The dispute centred around an offer of compromise made by Rabah Enterprises, which proposed to accept $2 million in full settlement of the claim. The case was heard in the Supreme Court of New South Wales.

The primary legal issue before the court was whether the offer of compromise was genuine or merely a tactical manoeuvre for the purposes of cost protection. The court was also required to determine whether the defendant had sufficient information to assess the reasonableness of the offer, and whether the plaintiff's subsequent amendments to their case warranted indemnity costs.

The court held that the offer of compromise was not genuine, as it was made for the purpose of cost protection. The court found that Rabah Enterprises had sufficient information to assess the reasonableness of the offer, having been provided with documents and particulars. Furthermore, the court concluded that the amendments to the plaintiff's case did not materially alter the case to be met, and ordered indemnity costs against the plaintiff.

As a result of the court's findings, Rabah Enterprises was not liable for costs on an indemnity basis, and the plaintiff was ordered to pay the defendant's costs of the proceeding.