Manassen Holdings Pty Ltd v Commercial & General Corporation Pty Ltd (No 2)

Manassen Holdings Pty Ltd commenced proceedings against Commercial & General Corporation Pty Ltd seeking damages for breach of contract. The dispute included issues relating to interest, costs, and GST. The case was before the Supreme Court of South Australia where the primary issue was whether the plaintiffs had obtained a judgment no less favourable than the defendant's offer of compromise under r 188F of the Supreme Court Civil Procedure Rules 2006 (SA). Additionally, the court considered whether the defendant could rely on an ambiguity in the offer despite not raising it earlier.

The court held that if the defendant wanted to rely on an ambiguity in the offer, it should have done so when it filed its response under r 188A. The court found that the defendant's failure to raise the ambiguity at that time was fatal to its ability to do so later. The court also concluded that r 188F(3) required a holistic comparison of all components of the offer and the judgment, including interest, costs, and GST. The court found that the plaintiffs' judgment was no less favourable than the offer in terms of the principal relief and other components, despite not being awarded GST. The plaintiffs had a contractual right to recover GST, but due to a private ruling, they did not seek relief for GST in their judgment.

The court ordered that the plaintiffs were entitled to a judgment no less favourable than the defendant's offer, including all components such as interest, costs, and the principal relief. The defendant's argument regarding the ambiguity in the offer was rejected, and no order was made regarding the recovery of GST.