Stone (liquidator), in the matter of Ironbark Blacksmithing Pty Ltd (in liq) v Mizzi (No 2) [2024] FCA 927

Federal Court of Australia

Stone (liquidator), in the matter of Ironbark Blacksmithing Pty Ltd (in liq) v Mizzi (No 2) [2024] FCA 927 File number(s): NSD 710 of 2020

Judgment of: HALLEY J

Date of judgment: 16 August 2024

Catchwords: PRACTICE AND PROCEDURE – application for pre-judgment interest pursuant to s 51A of the Federal Court of Australia Act 1976 (Cth) – date from which pre-judgment interest in proceedings commenced by liquidator against former directors of a company should run – whether pre-judgment interest should accrue from date when cause of action arose, date of relevant demand made by liquidator or commencement of proceedings – plaintiff entitled to pre-judgment interest from date demands were made for repayment of loan advances and compensation with respect to insolvent trading debts, and from date of filing of amended statement of claim with respect to directors' duties contraventions COSTS – costs of the proceedings – defendants' application for proportionate costs order – circumstances in which a Court will make a proportionate costs order – ordinary rule that costs follow the event is not displaced – defendants to pay the plaintiffs' costs of the proceedings COSTS – application for costs on an indemnity basis – whether plaintiffs entitled to indemnity costs by reason of defendants' failure to accept a Calderbank offer and offers of compromise pursuant to r 24.14(3) of the Federal Court Rules 2011 (Cth) – where failure to accept Calderbank offer was not unreasonable – where rebuttable presumption in favour of an award of indemnity costs with respect to offers of compromise not displaced – plaintiffs entitled to costs of the proceedings including on an indemnity basis from the second business day after making offers of compromise