Leichhardt Municipal Council v Green

Leichhardt Municipal Council (the appellant) sought indemnity costs from Green (the respondent) following proceedings in the Court of Appeal. The dispute concerned the appellant's entitlement to indemnity costs, arising from a settlement offer made by the appellant prior to the original proceedings. This offer proposed that the verdict would be in favour of the Council, with each party bearing its own costs.

The central legal issue before the Court of Appeal was whether the appellant's offer constituted a genuine offer of compromise, and if so, whether the discretion to award indemnity costs should be exercised in its favour. The court was required to assess the nature and effect of the settlement offer in the context of the subsequent proceedings and the final outcome.

The Court of Appeal determined that the offer made by the appellant was not a genuine offer of compromise. The court reasoned that the offer was framed in a way that presupposed a favourable verdict for the Council, rather than proposing a compromise on the disputed issues. Consequently, the court found no basis to exercise its discretion to award indemnity costs.

The application for indemnity costs was dismissed, and the appellant was ordered to pay the costs of the respondent in relation to that application.