Source & Resources Pty Ltd v Porada (No 2)

The case involved Source & Resources Pty Ltd, the plaintiff, and Porada, the defendant. The dispute centered on a contract for the sale of land, which the plaintiff claimed to have validly rescinded. The plaintiff also sought damages for the maintenance of a caveat on unreasonable grounds. The matter was before the court to determine whether the defendants were unreasonable in rejecting an offer of compromise that included the payment of costs, which were fixed at $11,500. The court was also required to decide whether the plaintiff was entitled to some costs.

The primary legal issues before the court were whether the defendants were unreasonable in rejecting the plaintiff's offer of compromise and whether the plaintiff was entitled to some costs. The court examined the principles of compromise and the appropriate circumstances under which costs may be awarded. The court also considered the nature of the offer of compromise and the defendants' conduct in rejecting it.

The court found that the defendants were unreasonable in rejecting the plaintiff's offer of compromise. The court noted that the offer was comprehensive and included payment of the fixed costs. The court also found that the plaintiff was entitled to some costs due to the defendants' unreasonable conduct in rejecting the offer of compromise. The court ordered the defendants to pay the plaintiff's costs of the proceedings up to the date of the offer of compromise and a proportion of the costs thereafter, reflecting the defendants' unreasonable conduct. The court also ordered the defendants to pay the fixed costs of $11,500 as part of the plaintiff's costs.