Michael Szczerbanik v Carnival PLC trading as Carnival Cruise Lines

The case before the court involved Michael Szczerbanik as the plaintiff, suing Carnival PLC trading as Carnival Cruise Lines as the defendant. The dispute arose from an incident occurring on a cruise ship operated by the defendant. The plaintiff sought damages for injuries sustained during the voyage. The Federal Circuit Court of Australia heard the case, focusing primarily on the costs incurred by both parties and the appropriate allocation thereof.

The legal issues before the court centred on the discretion of the court in ordering costs in party/party and indemnity costs scenarios. The court had to determine whether the refusal of an offer to settle was unreasonable, and whether the plaintiff’s solicitor should repay the plaintiff the costs payable to the defendant. Furthermore, the court needed to decide if the plaintiff was entitled to an exhibit returned to the defendant.

In its decision, the court exercised its discretion under the relevant legislation to order costs. The court found that the plaintiff's refusal of a settlement offer was unreasonable, leading to the imposition of indemnity costs from a certain date. The court also ruled that the plaintiff's solicitor was to repay the plaintiff the costs payable that the plaintiff had been ordered to pay to the defendant. Additionally, the court ordered the return of an exhibit to the defendant. This decision was based on the court's assessment of the conduct of both parties and the reasonableness of the settlement offer.