Federal Court of Australia
FEDERAL COURT OF AUSTRALIA
Port Kembla Coal Terminal Ltd v Braverus Maritime Inc (No 2) [2004] FCA 1437
COSTS – offer of compromise – application for indemnity costs – circumstances in which the Court should 'otherwise order' – defendant asserted that it had insufficient time and information to be able to consider the offer – no direct evidence to support assertions – no reason to 'otherwise order' – indemnity costs ordered
COSTS – without prejudice offer – application for indemnity costs – consideration of Calderbank principles – cross-defendant required to show that defendant's failure to accept the offer was unreasonable in all the circumstances – whether unreasonable to reject a small offer when success in cause of action doubtful – not unreasonable to pursue a claim in an untested area of the law – indemnity costs not appropriate – costs awarded on party/party basis Federal Court Rules Order 23 rule 11(4), Order 23 rule 5(3) Navigation Act 1912 (Cth) s 410B Ports Corporatisation and Waterways Management Act 1995 (NSW) ss 85, 86 Alpine Hardwoods (Australia) Pty Ltd v Hardys Pty Ltd (No 2) (2002) 190 ALR 121 cited Black v Lipovac [1998] FCA 699 cited Calderbank v Calderbank [1976] Fam 93 cited Colgate-Palmolive Company v Cussons Pty Ltd (1993) 46 FCR 225 referred to Flemington Properties Pty Ltd v Raine & Horne Commercial Property Pty Ltd [1998] FCA 53 approved Fowles v Eastern & Australian Shipping Co Ltd (1913) 17 CLR 149 cited Hillier v Sheather (1995) 36 NSWLR 414 cited Houatchanthara v Bednarczyk (unreported, NSWCA, Clarke and Handley JJA, Santow AJA, 14 October 1996, BC 9604998) cited Manly Council v Burn (No 2) [2004] NSWCA 227 cited MGICA (1992) Pty Ltd v Kenny & Good Pty Ltd (No 2) (1996) 70 FCR 236 cited Morgan v Johnson (1998) 44 NSWLR 578 cited NSW Insurance Ministerial Corporation v Reeve (1993) 42 NSWLR 100 applied Oceangas (Gibraltar) Ltd v Port of London Authority [1993] 2 Lloyd's Rep 202 cited Oceanic Crest Shipping Pty Ltd v Pilbara Harbour Services Ltd (1986) 160 CLR 626 cited Port Kembla Coal Terminal v Braverus Maritime Inc [2004] FCA 1211 cited Smith v 600 Machinery Australia Pty Ltd [1996] FCA 1029 cited Sydney Markets Limited v Sydney Flower Market Pty Ltd [2002] FCA 283 cited Wills v Bigmac Pty Ltd [1994] FCA 949 discussed Workington Harbour & Dock Board v Towerfield (Owners) [1951] AC 112 cited Halsbury's Laws of Australia PORT KEMBLA COAL TERMINAL LTD v BRAVERUS MARITIME INC N 1397 OF 2002 HELY J 5 NOVEMBER 2004 SYDNEY
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