Surf Life Saving Sydney Northern Beaches Incorporated v Garland

Surf Life Saving Sydney Northern Beaches Incorporated (the applicant) brought a claim in the Admiralty jurisdiction of the Federal Court of Australia against Mr Garland (the defendant) for damages arising from a collision between their respective vessels. The dispute concerned liability for the collision and the subsequent assessment of damages.

The primary legal issues before the Court were whether the applicant's vessel was an overtaking vessel at the time of the collision, and whether the defendant had maintained a proper lookout. Additionally, the Court was required to determine whether the applicant was entitled to an order for costs on an indemnity basis, specifically considering whether it was unreasonable for the defendant to have rejected settlement offers made by the applicant.

Judge Street found that the applicant's vessel was not an overtaking vessel, and that the defendant had failed to keep a proper lookout, thereby causing the collision. In relation to costs, the Court determined that the defendant's refusal to accept the applicant's settlement offers was unreasonable in the circumstances. Consequently, the Court ordered that the applicant recover its costs from the defendant on an indemnity basis.