Westpac Banking Corporation v Jamieson

In the case of Westpac Banking Corporation v Jamieson, the primary dispute was over costs incurred during litigation. The case was heard in the court of appeal, which considered the costs associated with the bank’s unsuccessful appeal against a judgment in favor of the respondents. The respondents sought indemnity costs, arguing that the bank's rejection of a Calderbank offer constituted an unreasonable decision that warranted such an award.

The court had to determine whether the bank’s rejection of the offer was unreasonable and whether any special or unusual circumstances existed to justify an award of indemnity costs. Additionally, the court addressed whether the costs associated with the notice of contention filed by the respondents should be borne by the bank or the respondents, especially given that the appeal was dismissed, and the issues raised by the notice of contention were not determined.

In its reasoning, the court found that the bank’s rejection of the offer was not unreasonable as the offer did not represent a substantial compromise on the judgment sum and post-judgment interest. Consequently, the court held that there were no special or unusual circumstances justifying an award of indemnity costs. Regarding the notice of contention, the court ruled that the costs should be borne by the bank, as the appeal was dismissed, and the issues raised by the notice of contention were not pursued further. The cross-appeal and the application filed on 10 September 2014 also resulted in orders for costs to be paid by the respective parties.

The court ordered that the appellant pay the respondents’ costs of and incidental to the appeal, including those of the notice of contention, and the cross-appellants pay the cross-respondent’s costs of and incidental to the cross-appeal. Furthermore, the first cross-appellant was ordered to pay the cross-respondent’s costs of and incidental to the application filed on 10 September 2014. All costs were to be assessed on the standard basis.