Re Swan Services Pty Ltd (in liq)

In the liquidation of Swan Services Pty Ltd, the plaintiff, Swan Services, and the cross-claimants, two directors of the company, engaged in a dispute concerning the company's financial status and related claims. The case was heard by the Federal Court of Australia. The central issue was the allocation of costs in relation to the unsuccessful Calderbank offers made by the plaintiff and cross-claimants and the determination of whether the cross-defendant should bear the costs of proving insolvency in specific circumstances.

The legal issues revolved around whether it was unreasonable for the plaintiff and cross-claimants to reject the Calderbank offers, and if the cross-defendant, who successfully defended a claim of insolvent trading but failed in her own claim and in defending another cross-claim, should be responsible for the costs of proving the solvency of the companies at certain dates. Additionally, the court needed to decide whether the costs awarded to the cross-defendant for the unsuccessful cross-claim of insolvent trading should exclude the costs associated with proving the companies' solvency.

The court found that it was not unreasonable for the plaintiff and cross-claimants to reject the Calderbank offers, as the offers did not adequately address their respective claims. The court further ruled that the cross-defendant was not required to pay the costs of proving insolvency for the cross-claimants, as these costs were not directly related to the successful defence of the insolvent trading claim. The court determined that the costs awarded to the cross-defendant for the unsuccessful cross-claim should exclude the costs of proving the companies' solvency, as these costs were not pertinent to the outcome of the insolvent trading claim.