Maroubra Pool Café Pty Ltd v Fedele (No 2)

The case involved Maroubra Pool Café Pty Ltd, the plaintiff, and Fedele, the defendant. The dispute centred around the operation of a café in Sydney, with the plaintiff claiming that the defendant had breached a lease agreement. The case was heard in the Supreme Court of New South Wales. The plaintiff sought various remedies, including damages, an account of profits, and an injunction. The defendant denied the allegations and counter-claimed for unpaid rent and damages.

The court was required to determine whether the defendant had breached the lease agreement, the extent of any damages, and the appropriate costs order. The primary legal issue was whether the defendant unreasonably failed to accept a Calderbank offer made by the plaintiff, which could result in an indemnity costs order against the defendant. The court had to balance the plaintiff's partial success against the defendant's unreasonable refusal to accept the offer.

The court found that the defendant had breached the lease agreement, awarding the plaintiff damages and an account of profits. However, the court also found that the defendant unreasonably failed to accept the Calderbank offer, which resulted in an indemnity costs order from the date of the offer. The court considered the plaintiff's partial success and the defendant's unreasonable refusal to accept the offer, determining that it was appropriate to order that the defendants pay only half of the plaintiff's costs for the period prior to the offer. The court's final order included the aforementioned costs order, damages, and an injunction against the defendant.