Tremco Pty Ltd v Thomson

Tremco Pty Ltd sued Thomson over an issue concerning a formal offer to settle under Chapter 9, Part 5 of the Uniform Civil Procedure Rules. The plaintiff sought to enforce an offer to settle, arguing that it was more favourable to the defendant than judgment. The defendant rejected the offer and the matter proceeded to trial, resulting in a judgment for the plaintiff. The dispute in the court centred on whether the plaintiff's letter constituted a valid offer under the rules, whether the offer was more favourable to the defendant than judgment, and if it was unreasonable for the defendant to reject the plaintiff's offer.

The court found that the plaintiff's letter met the essential requirements for a valid offer under Chapter 9 Part 5 of the Uniform Civil Procedure Rules. The letter clearly stated the terms of the offer, including the amount of money to be paid and the time frame for payment. The court also found that the offer was more favourable to the defendant than judgment, as the defendant would have been liable for higher costs and interest if the case had proceeded to judgment. Finally, the court found that it was unreasonable for the defendant to reject the plaintiff's offer, as the offer provided a practical and efficient resolution to the dispute.

The court ordered that judgment be entered for the plaintiff in the amount of $66,877.55, with no order as to costs in respect of costs thrown away by the adjournment of the trial on 4 September 2017. The defendant was ordered to pay the plaintiff's costs of the proceedings on the standard basis up to and including 24 May 2017, and on an indemnity basis from 25 May 2017. The court's decision highlights the importance of considering formal offers to settle in appropriate cases, and the potential consequences of rejecting such offers.