Yowie Group Ltd and Bolton v Keybridge Capital Ltd (No 4)

The dispute before the Court of Appeal of New South Wales concerned an application for special costs orders following an unsuccessful offer of compromise made by the respondent, Keybridge Capital Ltd, to the appellant, Mr Bolton. The primary issue revolved around the duration for which the offer of compromise remained open and the consequences for costs, particularly in light of the Uniform Civil Procedure Rules.

The court was required to determine whether Mr Bolton's offer of compromise, made prior to the trial, remained open for acceptance for a reasonable time in the circumstances. Furthermore, the court had to consider the application of rule 42.15A of the Uniform Civil Procedure Rules regarding the award of indemnity costs following an unaccepted offer of compromise made before trial.

The court reasoned that the offer of compromise was open for acceptance until it was formally withdrawn or superseded. As Mr Bolton had not accepted the offer within a reasonable time, and the offer had not been withdrawn, the court found that the conditions for applying rule 42.15A were met. Consequently, the court ordered that Mr Bolton pay the respondent's costs of the appeal, with costs incurred up to 17 July 2025 to be assessed on the ordinary basis, and costs incurred from 18 July 2025 to be assessed on an indemnity basis.