Sheather v Country Energy (No.2)

In *Sheather v Country Energy (No.2)*, the New South Wales Court of Appeal considered an application for costs following an appeal. The dispute concerned the costs of the original proceedings, where an offer of compromise had been made by Country Energy but not accepted by Mr. Sheather.

The primary legal issue before the Court of Appeal was whether Mr. Sheather should be awarded indemnity costs for the original proceedings, given that Country Energy had made an offer of compromise that was not accepted. The Court also considered whether any costs order should be made in relation to the appeal itself.

The Court determined that indemnity costs should be awarded to Mr. Sheather for the original proceedings from 1 May 2004. This decision was based on the fact that Country Energy had made an offer of compromise which was not accepted by Mr. Sheather, and the subsequent proceedings had been conducted on the basis of that offer. However, the Court declined to award indemnity costs for the appeal itself, as no offer of compromise had been made in relation to the appeal proceedings.

Accordingly, the Court ordered that Mr. Sheather's costs of the proceedings, but not of the appeal, from 1 May 2004, were to be assessed on an indemnity basis.