Taylor v Stav Investments Pty Ltd as trustee for the Stav Investments Family Trust (No 2)

In *Taylor v Stav Investments Pty Ltd as trustee for the Stav Investments Family Trust (No 2)*, the New South Wales Court of Appeal considered an appeal and cross-appeal concerning the apportionment of costs following a mixed outcome. The primary dispute involved a claim for damages, with the appeal and cross-appeal addressing various aspects of the original judgment, including causation and the quantum of damages.

The Court was required to determine whether the general rule that costs follow the event should apply, or if exceptions were warranted due to the mixed success of the parties on appeal. Specifically, the Court had to consider the impact of an unsuccessful appeal on causation and a significant reduction in damages on appeal when apportioning costs. Furthermore, the Court examined whether a prior offer of compromise complied with the requirements of the *Uniform Civil Procedure Rules 2005* and the *Calderbank* principle.

The Court reasoned that the issues on appeal were sufficiently discrete to justify an apportionment of costs. While the appellants were unsuccessful on the issue of causation, which was a significant aspect of the appeal, the respondents' success in reducing the damages awarded was also a material factor. The Court found that the *Calderbank* offer made by the respondents did not meet the necessary requirements to attract indemnity costs. Consequently, the Court ordered that the respondents pay 60% of the appellants’ costs of the appeals and the appellants’ costs of the cross-appeals, setting aside an earlier order regarding costs in the primary proceedings.