Perisher Blue Pty Limited v Chubb Fire Safety Limited

Perisher Blue Pty Limited appealed to the Supreme Court of the Australian Capital Territory, Court of Appeal, against a decision of a Master. The dispute concerned the appropriate orders to be made following the discontinuance of proceedings by Chubb Fire Safety Limited, specifically in relation to a claim for contribution and indemnity.

The central legal issue before the Court of Appeal was whether the Master had erred in dismissing the proceedings relating to the contribution claim rather than entering judgment for Perisher Blue Pty Limited. This involved considering the discretion of the court in relation to costs following the discontinuance of proceedings and the proper application of that discretion in the context of a third-party claim.

The Court of Appeal upheld the appeal, finding that the Master had erred in dismissing the proceedings. The Court reasoned that the discretion as to costs is wide and should not be unduly restricted. In this instance, the discontinuance of the proceedings by Chubb meant that Perisher Blue Pty Limited was entitled to recover its costs in relation to the contribution claim. The Court ordered that Chubb pay the costs of Perisher Blue Pty Limited, specifically limiting those costs to the costs incurred in relation to the Third Party Notice before Perisher was joined as a defendant, and thereafter only the costs incurred in respect of the claim for contribution and indemnity. Chubb was also ordered to pay the costs of the appeal.