United Airlines Inc v Sercel Australia Pty Ltd (No 2)

United Airlines Inc (appellant) appealed against a decision of the primary judge. Sercel Australia Pty Ltd (respondent) was the respondent to the appeal. The dispute concerned the appropriate basis for the award of costs following the dismissal of the appeal.

The Court of Appeal was required to determine whether the costs of the appeal should be awarded on the ordinary or indemnity basis, and if a variation of the original costs order was warranted. Specifically, the court considered the impact of an offer of compromise made by the respondent on the costs order.

The Court of Appeal varied its previous order regarding the costs of the appeal. It held that the costs should be awarded on the ordinary basis up to and including 12 April 2011, and on an indemnity basis thereafter. This variation was based on the fact that the respondent had made an offer of compromise which was more favourable to the respondent than the outcome of the appeal. The court also ordered that the appellant pay the costs of a subsequent notice of motion on the ordinary basis.