Leslie Corbett v South 32 Limited (No 3)

Leslie Corbett was engaged as a consultant to South 32 Limited. Corbett sued South 32 for unpaid fees and damages for breach of contract. South 32 defended the action on the basis that Corbett had breached the terms of his contract. Allfab Constructions Pty Limited, an affiliate of South 32, intervened in the proceeding to seek indemnity from Corbett for any amount he was ordered to pay to South 32. The court was required to decide whether Corbett was liable to Allfab, and if so, whether Allfab was entitled to indemnity costs.

The court held that Corbett was not liable to Allfab. The court found that Allfab’s conduct amounted to an offer of compromise, and that Corbett’s rejection of the offer was reasonable. The court also found that Allfab’s conduct amounted to a Calderbank offer, and that Corbett’s rejection of the offer was reasonable. The court found that Allfab had no entitlement to indemnity costs, and dismissed Allfab’s application.

No order was made as to the costs of the application. The court found that Allfab’s conduct did not warrant an order for indemnity costs, and that Allfab had not demonstrated any exceptional circumstances that would warrant such an order.