Lescap Group Pty Ltd v Pacific Resort Holding Pty Ltd (No. 2)

Lescap Group Pty Ltd filed an application for costs in the Federal Circuit and Family Court of Australia against Pacific Resort Holding Pty Ltd. The dispute arose out of a proceeding where Pacific Resort Holding made an offer of compromise to Lescap Group. The offer was conditional on acceptance by all parties and was made in accordance with the rules, excluding costs. Lescap Group rejected the offer, leading to the present application for costs on an indemnity basis.

The court was required to decide whether the extent of Lescap Group's success on particular issues warranted any variation to the costs orders. Additionally, the court had to determine if the offer of compromise was invalid due to non-compliance with the Civil Procedure Rules and whether the conduct of Pacific Resort Holding warranted imposing the costs of the successful cross-defendants on Pacific Resort Holding.

The court found that the issues in the case were not dominant or wholly severable, and the insubstantial success of Lescap Group had no effect on the costs order. Therefore, the costs were ordered on the ordinary basis until the date of the offer and on the indemnity basis thereafter. The court also held that the non-compliance with the Civil Procedure Rules did not invalidate the offer of compromise. Regarding the joinder of parties, the court found that it was reasonable and proper to join all parties to avoid separate litigation. Finally, the court considered the conduct of Pacific Resort Holding and found it fair to impose the costs of the successful cross-defendants on Pacific Resort Holding.