Manly Council v Bryne (No 2)

Manly Council (appellant) appealed to the Court of Appeal of New South Wales against a decision of the primary judge which had awarded damages to Bryne (respondent). The dispute concerned the quantum of damages awarded to the respondent.

The central legal issue before the Court of Appeal was whether the appellant was entitled to an order for indemnity costs pursuant to Part 52A, rule 22(4) of the *Supreme Court Rules 1970* (NSW). This rule pertains to offers of compromise and the consequences of a party failing to achieve a more favourable outcome than that offered. The court was required to determine if the appellant's notice of compromise, which offered to accept the same monetary sum as awarded by the primary judge, constituted a valid offer of compromise for the purposes of the rule, and if so, whether indemnity costs should be ordered.

The Court of Appeal held that the notice of compromise, by offering to forego interest on the awarded sum, constituted a real compromise. The court reasoned that the offer was more favourable to the respondent than the judgment obtained, as it included the waiver of interest. Consequently, the court found that the conditions for ordering indemnity costs under rule 22(4) were met.

The Court of Appeal ordered that the appellant pay the respondent's costs on an indemnity basis.