Pastina Pty Ltd v Hosanna Excelsis One Universal Church Inc (No 2)

The case of Pastina Pty Ltd v Hosanna Excelsis One Universal Church Inc (No 2) dealt with a claim for indemnity costs by the plaintiff against the defendant, arising from a dispute over a lease agreement. The defendant vacated the premises and the plaintiff sought to enforce the lease terms and recover unpaid rent. The legal issues in the case involved whether the plaintiff was entitled to indemnity costs due to the defendant's conduct throughout the proceedings, particularly the failure to accept the Calderbank offer. The court had to consider the conduct of the defendant, the effectiveness of the Calderbank offer, and the overall reasonableness of the plaintiff's pursuit of costs.

The court found that the defendant had received the emails from the plaintiff asserting the lease terms and the Calderbank offer. Despite the defendant's denials, forensic evidence confirmed the receipt of these communications. The court emphasised the importance of the defendant's failure to respond to the Calderbank offer as part of their overall conduct. The court held that the defendant's unreasonable conduct in ignoring the Calderbank offer and continuing to contest the proceedings despite clear evidence of their obligations contributed to the plaintiff's entitlement to indemnity costs. The court concluded that the plaintiff's pursuit of costs was reasonable given the circumstances.

Based on the court's findings, the plaintiff was awarded indemnity costs. The court considered the totality of the defendant's conduct, including the failure to accept the Calderbank offer, as unreasonable and unjustified. The court ordered the defendant to pay the plaintiff's costs of the proceeding on an indemnity basis. This decision underscores the importance of responding to formal offers of settlement and the potential consequences of disregarding such offers in legal proceedings.