Re Sitch (No 2)

In the matter of the estate of the late Mr Sitch, the parties involved in the dispute were the estate representatives and the beneficiaries. The core of the issue was the allocation of costs in relation to a claim for family maintenance. The case was heard in the Supreme Court of Victoria.

The primary legal question before the court was the appropriate allocation of costs in circumstances where the estate had made a successful Calderbank offer. The court was required to determine whether the successful party should bear part of the costs of the unsuccessful party, despite the existence of a Calderbank offer. The court also needed to consider the principle that the costs should follow the event, which is a foundational principle of Australian civil procedure.

The court, after a comprehensive review of the relevant authorities and the circumstances of the case, concluded that the successful party should bear a portion of the unsuccessful party’s costs. This decision was based on the recognition that while a Calderbank offer is an important tool in litigation, it does not absolve the successful party from contributing to the costs of litigation. The court ordered that the estate should pay a specified proportion of the costs incurred by the beneficiaries, reflecting the partial success achieved by both parties.