Mainteck Services Pty Ltd v Stein Heurtey SA (No 2)

In *Mainteck Services Pty Ltd v Stein Heurtey SA (No 2)*, the New South Wales Court of Appeal considered an application for indemnity costs following the rejection of *Calderbank* offers and an application for a gross sum costs order. The dispute arose from an appeal concerning costs.

The Court was required to determine whether to award costs on an indemnity basis for certain periods of the litigation, and whether the costs should be ordered as a gross sum. The central legal issue revolved around the application of *Calderbank* principles and the court's power to make a gross sum costs order.

The Court of Appeal ordered that Mainteck pay the respondents' costs of the appeal on an ordinary basis for costs incurred up to 30 October 2013 and in respect of Mainteck's application for special costs orders. However, for costs incurred after 30 October 2013, excluding those related to the special costs application, Mainteck was ordered to pay on an indemnity basis. The Court also remitted to the Equity Division the question of whether the costs orders should be made as a gross sum under s 98(4) of the *Civil Procedure Act 2005* (NSW) and, if so, the quantum of that gross sum.