Wib Australia Pty Ltd v Bi (No 2)

Wib Australia Pty Ltd brought proceedings against Bi in the Federal Circuit Court, seeking damages for alleged breaches of fiduciary duties and misuse of confidential information. The defendants, Bi, were unsuccessful on a number of issues, leading to a consideration of costs under the Calderbank principle. The court was required to determine whether the plaintiff's failure to accept Calderbank offers made by the successful defendants was unreasonable and whether the court should make a costs order in their favour.

The court examined the circumstances surrounding the Calderbank offers and the plaintiff's responses. It considered the nature of the offers, the timing, and the plaintiff's reasons for rejecting them. The court found that the Calderbank offers were genuine and that the plaintiff's failure to accept them was unreasonable in the circumstances. The court concluded that an appropriate costs order should be made in favour of the defendants.

The court ordered that there be no order as to the costs of the proceedings with the intent that each party is to bear its or their costs of the proceedings. This means that neither party is entitled to a costs order, and each party will bear their own costs incurred during the proceedings. The court's decision highlights the importance of evaluating Calderbank offers carefully and the potential consequences of rejecting them without reasonable justification.