Toohey v Golder (No 4)

In the matter of Toohey v Golder (No 4), the applicants/defendants sought leave to appeal against a costs order in the Federal Court of Australia. The central dispute in this case centred around the applicants'/defendants' failure to accept a Calderbank offer, which is an informal offer made outside of the formal process of offers of compromise, and its effect on the exercise of discretion regarding costs.

The legal issues before the court involved whether the applicants'/defendants' refusal to accept the Calderbank offer influenced the court's discretion in awarding costs. Specifically, the court had to consider the principle that a party's refusal to accept a reasonable offer of compromise can be a significant factor in the court's determination of costs, especially when the offer is made in good faith and is considered reasonable by the court.

The court found that the applicants'/defendants' failure to accept the Calderbank offer did indeed impact its exercise of discretion in awarding costs. The court emphasised that such refusal can have substantial consequences, particularly when the offer was made in good faith and was reasonable. Consequently, the court ruled that the applicants/defendants would bear the costs of the plaintiff's application for leave to appeal filed on 15 June 2022. This decision underscores the importance of considering informal offers of compromise in the context of costs orders within the Australian legal framework.