Mega-top Cargo Pty Ltd v Moneytech Services Pty Ltd

Mega-top Cargo Pty Ltd (the applicant) sought to vary costs orders made in proceedings between itself and Moneytech Services Pty Ltd (the respondent). The application concerned the respondent's entitlement to costs following an offer of compromise made by the respondent.

The primary legal issue before the Court of Appeal was whether the respondent's offer of compromise, described as a "walk-away" offer, constituted a "better outcome" for the respondent than the judgment obtained, thereby entitling the respondent to special costs orders. The Court was required to determine if the offer was a genuine compromise or if it was so one-sided as to lack the characteristics of a compromise for the purposes of the relevant costs rules.

The Court held that the offer of compromise was not a genuine compromise because it did not involve any significant concession by the respondent. It was a "walk-away" offer that required the applicant to take no further action and pay the respondent's costs, which the Court found to be an unreasonable demand. The Court applied the principle that an offer of compromise must demonstrate a willingness to compromise and achieve a resolution that is better for the offeror than the ultimate judgment. As the offer did not meet this threshold, the Court found no basis for varying the original costs orders.

The application to vary the costs orders was refused.