Macquarie International Health Clinic Pty Ltd v Sydney Local Health District (No 12)

Macquarie International Health Clinic Pty Ltd (MHIC) was the plaintiff and Sydney Local Health District (SLHD) was the defendant in a dispute before the Supreme Court of New South Wales. MHIC brought an action against SLHD seeking damages for trespass to land and rights of real property. The dispute centred on the assessment of mesne profits for the trespass by the landlord against the tenant, where the tenant's rights included a 103-year lease to build and operate a car park and private hospital. The damages were assessed as at the date the cause of action arose. The court also considered the costs incurred in the litigation, including whether an indemnity costs order should be made and whether leave to reopen argument should be granted.

The legal issues in the case included the proper basis for quantifying costs where the successful plaintiff was liable under several interlocutory costs orders, the factors relevant to the court's discretion when quantifying costs, and whether indemnity costs should be awarded when the plaintiff succeeds on a basis not pleaded at the time the defendant rejected a Calderbank offer. The court was also asked to determine whether leave should be granted to reopen argument where an argument had not been put or was said to have been overlooked.

The court found that the measure of damages for the trespass was to be assessed as at the date the cause of action arose. In relation to costs, the court held that the general rule that costs follow the event applied, and the plaintiff was liable for the defendant's costs on the indemnity basis. The court also held that indemnity costs should not be awarded where the plaintiff succeeds on a basis not pleaded at the time the defendant rejected a Calderbank offer. The court further found that leave to reopen argument should not be granted where an argument had not been put or was said to have been overlooked.

The final orders of the court included that damages were to be assessed as at the date the cause of action arose and that the plaintiff was to pay the defendant's costs on the indemnity basis. The court also dismissed the plaintiff's application for indemnity costs from the date of the Calderbank offer and refused leave to reopen argument.