Rakman International Pty Limited v Boss Fire & Safety Pty Ltd (No 2)

In the case of Rakman International Pty Limited v Boss Fire & Safety Pty Ltd (No 2), the court addressed several key issues relating to costs and injunctions in patent litigation. The primary focus was on whether costs should be awarded on an indemnity basis due to the parties' failures to accept offers of compromise, and the form of final orders concerning an application for an injunction against misleading or deceptive conduct. The court dismissed the appeal and addressed the costs and injunction issues.

The legal issues before the court included determining the applicability of rule 25.14 of the Federal Court Rules 2011 in awarding costs, and whether the applicant/cross-respondents were entitled to an injunction against the respondents for misleading or deceptive conduct. The court had to decide if the failure to accept offers of compromise warranted indemnity costs and whether the conduct of the applicant/cross-respondents warranted an injunction. The court needed to consider the principles of costs in equity and the specific provisions of the Federal Court Rules concerning offers of compromise and misleading or deceptive conduct.

The court found that rule 25.14 did not apply as the cross-claimant was not an “applicant” within the meaning of that rule. The court considered that the definition of “applicant” in the Dictionary to the Rules made clear that an “applicant” was a party claiming relief other than a cross-claimant. Consequently, the relevant rule was r 25.14(2), which entitled the cross-claimant to its costs on a party and party basis up to a certain date and on an indemnity basis thereafter. The court concluded that the applicant/cross-respondents were not entitled to an injunction as the representations they made did not constitute misleading or deceptive conduct. The court dismissed the appeal and ordered the appellant to pay the respondent's costs up to a specified time on a party-party basis and from that time on an indemnity basis.