McKenzie v Day (No 2)

This case involved a plaintiff who had commenced proceedings against a defendant for damages arising from personal injury. The plaintiff's case was ultimately unsuccessful, and the defendant sought costs against the plaintiff's solicitors on the basis that they had provided legal services without there being a reasonable prospect of success. The plaintiff also rejected a "walk away offer" made by the defendant, which was an offer of compromise.

The court was required to determine whether the plaintiff's solicitors had provided legal services without a reasonable prospect of success and whether the defendant's "walk away offer" constituted a true offer of compromise. The court found that the plaintiff's solicitors had acted reasonably in providing legal services and that the defendant's "walk away offer" was not a true offer of compromise. However, the court did order that the plaintiff pay the defendant's costs on an indemnity basis from the day after the offer of compromise was made.

The court refused the defendant's application for costs against the plaintiff's solicitors, finding that they had acted reasonably in providing legal services. The court also found that the defendant's "walk away offer" was not a true offer of compromise, as it was not a genuine attempt to resolve the dispute. However, the court ordered that the plaintiff pay the defendant's costs on an indemnity basis from the day after the offer of compromise was made, as the plaintiff had rejected the offer. The plaintiff was also ordered to pay the defendant's costs on the ordinary basis until a certain date.