Roads and Traffic Authority v McGregor (No 2)

The Roads and Traffic Authority and the Woollahra Municipal Council appealed to the Court of Appeal of New South Wales against a decision concerning the assessment of damages awarded to Mrs McGregor. The dispute centred on the apportionment of costs following a successful appeal by Mrs McGregor against the original assessment of damages.

The primary legal issue before the Court of Appeal was whether indemnity costs should be awarded to Mrs McGregor in respect of the appeal and cross-appeal, given that she had made an offer of compromise that was not accepted by the appellants. The court was required to consider the principles governing the award of indemnity costs, particularly in circumstances where multiple parties are involved and where there are multiple issues in dispute.

The Court of Appeal determined that indemnity costs were not warranted in this instance. The court reasoned that while Mrs McGregor had achieved a better outcome on appeal than that offered, the offer of compromise was not sufficiently clear or comprehensive to justify departing from the usual order for costs. The court noted that the offer did not adequately address the complexities arising from the multiple parties and the various issues that had been litigated. Consequently, the court ordered that the Roads and Traffic Authority and the Woollahra Municipal Council pay 85 percent of Mrs McGregor’s costs of the appeal and cross-appeal, with the liability to be apportioned between them. Mrs McGregor was also to receive a certificate under the Suitors’ Fund Act 1951 if she otherwise qualified.