Megerditchian v Khatchadourian (No 2)

The case of Megerditchian v Khatchadourian involved a family provision claim brought by the plaintiff against the defendant, the executor of the estate of the plaintiff’s father. The plaintiff sought a family provision order against the estate of the deceased. The dispute was heard in the Supreme Court of New South Wales. The core issue before the court was whether the plaintiff should be deprived of their costs under rule 42.34 of the Uniform Civil Procedure Rules 1999 (NSW) due to the rejection of an informal offer made by the defendant. The plaintiff’s claim was within the jurisdictional limit of the District Court, but was heard in the Supreme Court on the basis of urgency.

The court was required to determine the reasonableness of the plaintiff's rejection of the defendant’s informal offer and whether the plaintiff's rejection was sufficient to deprive them of their costs under the relevant rule. The court considered the content of the informal offer, the context in which it was made, and the plaintiff’s reasons for rejecting it. The court also examined the factors relevant to assessing the reasonableness of the plaintiff's decision, including the merits of the claim, the strength of the evidence, and the potential costs and risks associated with proceeding to trial.

In its reasoning, the court found that the rejection of the defendant’s informal offer was not unreasonable, considering the circumstances and the merits of the plaintiff’s case. The court held that the plaintiff was not deprived of their costs under rule 42.34. The court acknowledged the plaintiff's right to assess their claim and decide on the best course of action, and concluded that the plaintiff's decision was a reasonable one in the context of the case. The court further found that the plaintiff’s rejection of the offer did not warrant a deprivation of costs.

The final orders of the court included a determination that the plaintiff was not to be deprived of their costs, and that the defendant was ordered to pay the plaintiff’s costs of the proceeding.