SEMF Pty Ltd v Renown Corporation Pty Ltd (No 2)

The case involved SEMF Pty Ltd as the plaintiff and Renown Corporation Pty Ltd as the defendant. The dispute centred around a property transaction where SEMF had sold property to Renown. The plaintiff sought indemnity costs against the defendant, arguing that the defendant had failed to accept an informal offer made prior to the commencement of proceedings, which would have resulted in a better outcome for SEMF. Additionally, the cross-claimant sought recovery of costs on the ordinary basis.

The court was required to decide whether indemnity costs should be awarded when a plaintiff achieves a better result than what they would have received if the defendant had accepted an informal offer prior to the commencement of proceedings. The court also needed to determine if the cross-claimant could recover costs on the ordinary basis.

The court held that indemnity costs are not automatically awarded in circumstances where the plaintiff achieves a better result than what they would have received if the defendant had accepted an informal offer. The court reasoned that indemnity costs are only appropriate where the plaintiff has suffered a loss due to the defendant's conduct. In this case, SEMF had not suffered a loss, as it had achieved a better result than what it would have received if the defendants had accepted the informal offer. The court also held that the cross-claimant was not entitled to recover costs on the ordinary basis, as it had not succeeded on its cross-claim.

The court ordered that SEMF was not entitled to indemnity costs. The court also ordered that the cross-claimant was not entitled to recover costs on the ordinary basis.