Nationwide News Pty Ltd v Naidu (No 2)

This case concerned appeals and cross-appeals arising from a judgment in the Common Law Division of the Supreme Court of New South Wales. The primary dispute involved a claim for damages by Mr Naidu against Nationwide News Pty Ltd and ISS Security Pty Ltd. The appeals were heard by Spigelman CJ, Beazley JA, and Basten JA in the Court of Appeal.

The Court of Appeal was required to determine several legal issues, including whether an offer of compromise made by Mr Naidu justified an order for indemnity costs against Nationwide News Pty Ltd. It also considered whether a "Sanderson order" was appropriate, specifically whether the claim against one defendant was interdependent with or alternative to the claim against the other, and whether it was reasonable for Mr Naidu to join his employer, ISS Security Pty Ltd, as a defendant. Further issues related to the quantum of damages, the application of s 151Z of the Workers Compensation Act 1987 (NSW) on appeal, and the restitution of an interim payment under rule 51.54 of the Uniform Civil Procedure Rules 2005 (NSW), taking into account potential hardship to the plaintiff.

The Court's reasoning involved a detailed consideration of the offers of compromise and the conduct of the parties. It found that Nationwide News Pty Ltd's conduct justified ordering it to pay Mr Naidu's costs on an indemnity basis from a certain date. The court also addressed the interplay between the claims against the two defendants, ultimately allowing ISS Security Pty Ltd's appeal and setting aside the original judgment against it, while upholding the judgment against Nationwide News Pty Ltd. The court applied principles relating to offers of compromise, the discretion to award indemnity costs, and the statutory provisions governing workers compensation and restitution.

The final orders reflected these determinations. In the appeal by Nationwide News Pty Ltd, the appeal and cross-appeal by ISS Security Pty Ltd were dismissed, with Nationwide News ordered to pay the costs of ISS Security on the ordinary basis and Mr Naidu's costs on an indemnity basis from a specified date. In the appeal by ISS Security Pty Ltd, the appeal was allowed, the original judgment against ISS Security was set aside, and judgment was entered against Nationwide News Pty Ltd. Nationwide News was ordered to pay Mr Naidu's costs on an indemnity basis from a specified date, while Mr Naidu was ordered to pay ISS Security's costs. Mr Naidu was also granted a certificate under the Suitors' Fund Act 1951 (NSW).