Veljanovski v Tortorella Pty Ltd; Tortorella Pty Ltd v Veljanovski

In the proceedings between Veljanovski and Tortorella Pty Ltd, the dispute centred around indemnity costs following a failed mediation attempt. The case was heard by the Civil and Administrative Tribunal of New South Wales. The core issue before the tribunal was whether the mediation attempt constituted a Calderbank offer, which would have significant implications for the determination of costs.

The tribunal had to decide if the mediation proposal made by Veljanovski could be considered a Calderbank offer. This type of offer is a conditional offer to settle, made in the course of proceedings, which if rejected, results in the party making the offer being entitled to indemnity costs if they ultimately succeed. The tribunal examined the content and context of the mediation proposal, determining that it did not meet the criteria of a Calderbank offer. The proposal lacked the requisite conditions and did not unequivocally offer to settle the proceedings if the other party accepted.

Consequently, the tribunal ruled that the mediation attempt was not a Calderbank offer. As a result, Veljanovski was not entitled to indemnity costs. The tribunal ordered that Veljanovski pay the legal costs of Tortorella Pty Ltd as agreed or assessed within 14 days of the agreement or assessment. This decision underscored the importance of clear and conditional terms in any proposal intended to qualify as a Calderbank offer.