United Salvage Pty Ltd v Louis Dreyfus Armateurs SNC [2006] FCA 1611

FEDERAL COURT OF AUSTRALIA

United Salvage Pty Ltd v Louis Dreyfus Armateurs SNC [2006] FCA 1611 COSTS –Offer of Compromise made by defendants prior to hearing – application of O 23 r 11(5) – whether Offer of Compromise was defective because the sum of money was inclusive of interest and costs and/or the Offer required the plaintiffs to execute a "satisfactory deed of release" – whether "satisfactory deed of release" requirement is uncertain or would result in oppression to plaintiffs - whether defendants had engaged in disentitling conduct such that the Court should not award indemnity costs. Federal Court Rules, O 23 r 11(5) Meehan v Jones (1982) 149 CLR 571, followed UNITED SALVAGE PTY LTD, GLADSTONE TUG SERVICES PTY LTD AND QUEENSLAND TUG & SALVAGE CO PTY LIMITED v LOUIS DREYFUS ARMATEURS SNC, LOUIS DREYFUS ARMATEURS SAS, SOCIETE ANONYME LOUIS DREYFUS ET COMPAGNIE AND OLTRAMARE SHIPPING CO. S.A. NSD 246 OF 2002

TAMBERLIN J

23 NOVEMBER 2006

SYDNEY IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NSD 246 OF 2002

IN ADMIRALTY

BETWEEN: UNITED SALVAGE PTY LTD

First Plaintiff

GLADSTONE TUG SERVICES PTY LTD

Second Plaintiff

QUEENSLAND TUG & SALVAGE CO PTY LIMITED

Third Plaintiff

AND: LOUIS DREYFUS ARMATEURS SNC

First Defendant

LOUIS DREYFUS ARMATEURS SAS

Second Defendant

SOCIETE ANONYME LOUIS DREYFUS ET COMPAGNIE

Third Defendant

OLTRAMARE SHIPPING CO S A

Fourth Defendant

JUDGE: TAMBERLIN J DATE OF ORDER: 23 NOVEMBER 2006

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. The First, Second and Fourth Defendants pay to the Plaintiffs a total salvage award in the amount of $850,000.00 2. The First, Second and Fourth Defendants pay to the Plaintiffs interest on that sum: (a) in respect of the period from 28 March 2002 to the date on which judgment is entered, calculated at a rate of 9% per annum; and (b) in respect of the period from the date on which judgment is entered to the date of payment in accordance with Order 1 calculated at a rate of 10.5% per annum. 3. The First, Second and Fourth Defendants pay the Plaintiffs' costs of the proceedings incurred up to 11am on 10 December 2005, taxed on a party-party basis. 4. The Plaintiffs pay the First, Second and Fourth Defendants' costs of the proceedings incurred from 11am on 10 December 2005, taxed on a solicitor-client basis. 5. The Defendants pay the Plaintiffs' costs of and incidental to the question of liability salvage which was determined in favour of the Plaintiffs, on a party-party basis. 6. The Plaintiffs pay the Third Defendant's costs of the proceedings, on a party-party basis. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. IN THE FEDERAL COURT OF AUSTRALIA