Walker v Harwood

In *Walker v Harwood*, the applicants sought leave to appeal against orders made in the Equity Division concerning the costs of probate proceedings. The dispute centred on whether the applicants had unreasonably rejected a *Calderbank* offer made by the respondent, and consequently, whether the applicants should be ordered to pay the respondent's costs on an indemnity basis from a specified date.

The primary legal issues before the Court of Appeal were whether the applicants' rejection of the *Calderbank* offer was unreasonable, and if so, whether the court should exercise its discretion under rule 42.14 of the *Uniform Civil Procedure Rules 2005* to order the applicants to pay the respondent's costs on an indemnity basis from the day after the offer's expiry. The court also considered the general principles regarding costs in probate actions, specifically the exceptions to the rule that costs follow the event.

The Court of Appeal allowed the appeal, finding that the applicants' rejection of the *Calderbank* offer was not unreasonable in the circumstances. The court set aside the original orders and substituted new orders regarding the costs of the proceedings. The costs of the proceedings up to 10 am on 23 May 2016 were ordered to be paid out of the estate of the deceased on an indemnity basis. From 10 am on 23 May 2016, the defendants were ordered to pay the costs of the plaintiff on an indemnity basis. No order was made as to the costs of the appeal itself, meaning each party was to bear their own costs in the Court of Appeal.