PM Sulcs & Associates Pty Ltd v Oliveri (No 2)

The case of PM Sulcs & Associates Pty Ltd v Oliveri (No 2) involved a dispute between the plaintiff, a professional services company, and the defendant, an individual. The primary issue was the assessment of costs in a legal proceeding, particularly in relation to a Calderbank offer made by the defendants. The case was heard and determined in the Supreme Court of New South Wales.

The central legal issue was whether the court should depart from the general rule that a party is entitled to costs on a party and party basis where it has been found that the defendants had made a Calderbank offer and subsequently obtained orders that were more favourable than their offer. The court had to consider whether the defendants were entitled to costs on an indemnity basis from the date of the offer onwards, given their improved position in the proceedings.

The court considered the principles governing costs and the effect of a Calderbank offer. It noted that such offers are intended to encourage settlement and are generally made without prejudice. However, the court held that where a party obtains orders more favourable than their offer, it is appropriate to depart from the general rule of costs on a party and party basis. The court ordered costs on a party and party basis up until the date of the offer and on an indemnity basis thereafter. This decision was made to reflect the improved position of the defendants following the acceptance of their orders.

The final orders of the court included a detailed breakdown of costs to be paid by the plaintiff up until the date of the Calderbank offer on a party and party basis, and by the plaintiff on an indemnity basis from the date of the offer onwards. This decision provided clarity on the assessment of costs in relation to Calderbank offers and their implications for the parties involved in litigation.