Spuds Surf Chatswood Pty Ltd v PT Ltd (No 3), PT Ltd v Spuds Surf Chatswood Pty Ltd (No 2)

Spuds Surf Chatswood Pty Ltd v PT Ltd (No 3) and PT Ltd v Spuds Surf Chatswood Pty Ltd (No 2) involves a dispute between a landlord and a tenant over a retail lease. The case was heard in the Supreme Court of New South Wales. The primary issue before the court was whether certain communications made during a mediation process were admissible in subsequent litigation and the implications for the allocation of costs and interest.

The court considered the legal principles surrounding the admissibility of mediation communications and the application of a Calderbank offer in the context of costs. The parties had engaged in a mediation process, during which certain communications were made. The landlord argued that these communications should be considered in the court's determination of costs, while the tenant contended that the communications were privileged and should not be admissible. The court was required to decide whether the mediation communications were protected and, if not, how they should impact the costs and interest orders.

In its decision, the court found that the mediation communications were not privileged and could be considered in the assessment of costs. The court also determined that the tenant was required to pay interest on a sum previously ordered to be paid from a specific date until a later date. The court vacated a previous costs order and ordered a new costs order that included the costs associated with the vacated order. The court concluded that the tenant was to pay interest from 23 April 2008 to 3 August 2011, amounting to $92,811.46, and ordered that the tenant pay the landlord's costs of the proceedings on a party and party basis.