Porthaze Pty Limited v Friend

Porthaze Pty Limited v Friend involved a dispute between the plaintiff, Porthaze, and the defendants, Simon and Katrina Friend, over matters relating to costs and a Calderbank offer. The case was heard and determined in the Federal Circuit Court of Australia.

The primary legal issues the court had to address were whether the Calderbank offer constituted a special circumstance warranting an order for costs, and if so, the appropriate allocation of those costs between the parties. A Calderbank offer is a formal offer made by a party to settle on terms that, if not accepted, may result in the making of an order for costs against the party who made the offer.

In delivering the judgment, the court considered the nature of the Calderbank offer and the circumstances surrounding its making and rejection. It was noted that the offer was made shortly before the hearing and was comprehensive, including not only a settlement amount but also terms regarding costs. The court found that the offer did indeed constitute a special circumstance, given its timing and comprehensiveness. Consequently, the court ordered that Simon and Katrina Friend were entitled to costs from Porthaze Pty Limited. The amount of costs was quantified as $4,100.00, to be paid within 14 days of the order. Each party was ordered to bear their own costs in another proceeding.