Wills v Chief Executive Officer of the Australian Skills Quality Authority (Costs)

The case before the court involved Mr Wills appealing a decision made by the Administrative Appeals Tribunal (AAT) and the Australian Skills Quality Authority (ASQA) seeking indemnity costs for the appeal. The Full Court of the Federal Court of Australia dismissed ASQA's application for indemnity costs, ruling that the failure to accept an offer of compromise did not warrant a departure from the ordinary rules on costs. The court found that Mr Wills' rejection of the offer was not unreasonable in the circumstances.
The primary legal issue before the court was whether ASQA was entitled to indemnity costs for the appeal under either the Federal Court Rules 2011 or the Calderbank principle. The court considered whether the failure to accept an offer of compromise warranted a departure from the ordinary rules as to costs. The court also examined whether the offer of compromise made by ASQA was genuine, and whether Mr Wills' rejection of the offer was reasonable. The court held that the failure to accept the offer of compromise did not warrant a departure from the ordinary rules on costs.
The court found that Mr Wills' rejection of the offer was not unreasonable in the circumstances. The court noted that the offer was made on an open basis and was not a genuine compromise as it simply stated that there be no order as to costs. The court also found that Mr Wills was not required to accept the offer of compromise in order to avoid paying indemnity costs. The court held that the ordinary rules on costs should apply, and that ASQA was not entitled to indemnity costs for the appeal.
The court ordered that the application by ASQA for the applicant to pay the first respondent's costs of the appeal on an indemnity basis was refused. The court also ordered that the applicant was to pay the first respondent's party/party costs on the appeal, subject to certain deductions. The court further ordered that the parties were to endeavour to agree the quantum of costs payable under the order, fixed if possible in a lump sum.