CITATION: SKALKOS v ASSAF (NO 2) [2002] NSWCA 236 FILE NUMBER(S): CA 40860/00 HEARING DATE(S): On the papers JUDGMENT DATE:
23 July 2002PARTIES :
THEODORE SKALKOS & ANOR v JOSEPH ASSAF & ANOR (nO 2)JUDGMENT OF: Mason P; Giles JA; Fitzgerald AJA
COUNSEL: Appellants: J A Darvall
Respondents: K ReesSOLICITORS: Appellants: Tony Lazaropoulos
Respondents: Mallesons Stephen JaquesCATCHWORDS: COSTS - indemnity costs in Court of Appeal - offer of compromise from plaintiff ignored by defendants - broad judicial discretion - Calderbank letter a relevant but not determinative factor - whether judgment was a substantial improvement on terms offered - whether appellants' conduct can be categorised as unreasonable. (ND) CASES CITED: Cases Cited
Assaf v Skalkos [2000] NSWSC 935
CBA Investments Ltd v Northern Star limited (No 2) [2000] NSWCA 146
Ettingshausen v Australian Consolidated Press Ltd (1995) 38 NSWLR 404
Multicon Engineering Pty Ltd v Federal Airports Corporation (1996) 138 ALR 425
Nobrega v Trustees of the Roman Catholic Church for the Archdiocese of Sydney (No 2) [1999] NSWCA 133
Patronis v Oinoi & Kampi Pty Ltd (unrep, NSWSC, 30/11/93)
Sanko Steamship Co Ltd v Sumitomo Australia Ltd (unrep, Fed Ct, No 22/96, 7/2/96)
Skalkos & Anor v Assaf & Anor (2002) NSWCA 14
SMEC Testing Services Pty Ltd v Campbelltown City Council [2000] NSWCA 323DECISION: Appellants to pay the respondents' costs of the appeal on an indemnity basis.
CA 40860/00
Tuesday 23 July 2002MASON P
GILES JA
FITZGERALD AJA
1 THE COURT: On 13 February 2002 this appeal was dismissed with costs, with liberty to apply within 28 days if some special costs order was sought (see Skalkos & Anor v Assaf & Anor (2002) NSWCA 14). The Court rejected an application for indemnity costs to the extent that it was based upon the submission that the appellants had pressed an unarguable case. However, liberty to apply for a special costs order was reserved in case indemnity costs were sought on the basis of an unaccepted settlement offer (at [86]).
2 The respondents seek such an order, relying on the appellants’ rejection of a Calderbank offer made on 8 July 1994. The offer and the consequences of its rejection as regards the costs at trial are discussed in the judgment of Carruthers AJ in Assaf v Skalkos [2000] NSWSC 935.
3 Carruthers AJ ordered the then defendants to pay the plaintiffs’ costs on a party and party basis until 16 August 1994 and thereafter on an indemnity basis. He held that they had unreasonably rejected the plaintiffs’ offer on 8 July 1994 to settle the proceedings. On 16 August 1994 the offer was quantified as an offer to accept in full settlement:
- (a) $10,000;
(b) Indemnity costs of $25,389.52; and
- (c) Publication of an apology, in terms which had by that date been agreed with the defendants.
4 Carruthers AJ considered the apology, costs and compensation sought to be reasonable: see…
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- AGLC
- Skalkos v Assaf (No 2) [2002] NSWCA 236
- Case
- [2002] NSWCA 236
- Decision Date
CaseChat Overview and Summary
The Court of Appeal was required to determine whether it should exercise its broad discretion to award indemnity costs against the appellants. This involved considering whether the judgment obtained by the respondents constituted a substantial improvement on the terms offered in the compromise, and whether the appellants' conduct in ignoring the offer could be characterised as unreasonable, thereby justifying an award of indemnity costs.
The Court reasoned that while a *Calderbank* letter is a relevant factor in the exercise of discretion regarding costs, it is not determinative. In this instance, the judgment obtained by the respondents was a substantial improvement on the offer of compromise. Furthermore, the Court found that the appellants' conduct in disregarding the offer of compromise was unreasonable, justifying the exercise of its discretion to award costs on an indemnity basis.
Consequently, the Court ordered that the appellants pay the respondents' costs of the appeal on an indemnity basis.
Orders
Orders of the court
Appellants to pay the respondents' costs of the appeal on an indemnity basis.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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