Svitzer Salvage Australasia Pty Ltd v Trident Australasia Pty Ltd (No. 2)

In Svitzer Salvage Australasia Pty Ltd v Trident Australasia Pty Ltd (No. 2), the plaintiff, Svitzer, sought indemnity costs from the defendant, Trident, in relation to a previous judgment and orders made in Svitzer's favour. The original dispute concerned the hire of a vessel, the M/V Svitzer Kalbarri, and arose from a contract between the parties. The matter was ultimately settled, and the court made orders for judgment and costs in Svitzer's favour.

The legal issues before the court were whether the offer of compromise made by Trident was an offer to compromise under section 60 of the Uniform Civil Procedure Rules 2005 (NSW) and, if so, whether Svitzer was entitled to indemnity costs from the date of the offer to the date of judgment and whether the costs of the current application should be included in the indemnity costs order. Additionally, the court had to determine whether interest should be awarded on the judgment debt.

The court found that the offer of compromise made by Trident was indeed an offer under section 60 of the Rules. It further determined that Svitzer was entitled to indemnity costs from the date of the offer to the date of judgment and that the costs of the current application should be included in the indemnity costs order. The court also awarded interest on the judgment debt. The court concluded that the offer of compromise was a genuine offer to resolve the dispute on terms that were not substantially favourable to either party, and as such, Svitzer was entitled to indemnity costs from the date of the offer.

The orders made by the court were to vary the previous orders by including interest on the judgment debt and by ordering that the defendant pay the plaintiff's costs on a party/party basis to a specified date and thereafter on an indemnity basis, including the costs of the current application.