Nobrega v Trustees of the Roman Catholic Church for the Archdiocese of Sydney (No 2)

The applicants, Nobrega and others, sought costs of an appeal against the Trustees of the Roman Catholic Church for the Archdiocese of Sydney. The dispute concerned an offer of compromise made by the applicants, which was not in accordance with the Supreme Court Rules. The appeal was heard by Priestley and Powell JJA and Sheppard AJA.

The central legal issue before the court was whether to depart from the general rule that costs follow the event, specifically in circumstances where an offer of compromise had been made but not in compliance with the relevant court rules. The court had to consider the impact of such an offer on the allocation of costs, even though it did not strictly adhere to the procedural requirements for a formal offer of compromise.

The court reasoned that while the applicants' offer was not formally compliant, it nonetheless demonstrated a willingness to settle the litigation and was a genuine attempt to resolve the dispute. The Trustees had rejected this offer and proceeded with the litigation, ultimately unsuccessfully. In light of this, the court determined that it was just and appropriate to depart from the usual rule. The applicants were awarded their costs of the appeal, to be assessed on the ordinary basis, and the Trustees were ordered to pay those costs.