Left Bank Investments Pty Ltd v Ngunya Jarjum Aboriginal Corporation (No 2)

The case between Left Bank Investments Pty Ltd and Ngunya Jarjum Aboriginal Corporation was heard by the Federal Court of Australia. The dispute centred around an application by the defendant for indemnity costs, following the plaintiffs' failure to accept earlier offers of compromise. The defendant had served a Calderbank letter early in the proceedings and another offer of compromise later on. Neither offer was accepted by the plaintiffs. Despite this, the defendant succeeded on a defence that was not raised until after the Calderbank offer was made, and ultimately obtained a judgment more favourable than the offers.

The primary legal issue for the court was whether the offers made constituted genuine compromises and whether it was unreasonable for the plaintiffs not to accept them. The court needed to determine if the defendant's success on the defence and the more favourable judgment rendered the offers unreasonable to reject. The court also had to consider whether indemnity costs were warranted for the period after the offer of compromise was made.

The court found that the offers were genuine compromises as they were made in good faith and represented reasonable settlements. The plaintiffs' failure to accept these offers was deemed unreasonable, particularly given the defendant's subsequent success on the defence and the more favourable outcome. The court concluded that the offers did constitute genuine compromises and ordered indemnity costs for the period after the offer of compromise was made. This decision underscores the importance of considering Calderbank offers and offers of compromise in litigation and the potential consequences of rejecting such offers.