LCM Operations Pty Ltd v Rabah Enterprises Pty Ltd (No 3) [2023] NSWSC 869

Supreme Court New South Wales

Medium Neutral Citation: LCM Operations Pty Ltd v Rabah Enterprises Pty Ltd (No 3) [2023] NSWSC 869 Hearing dates: On the papers Date of orders: 28 July 2023 Decision date: 28 July 2023 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Indemnity costs ordered. Catchwords: COSTS — offer of compromise — offer to accept $2M in respect of $14.8M claim — whether genuine compromise or merely for 'costs protection' — objective assessment – 'tactical' offer does not mean genuine compromise not involved: at [53]. OFFER OF COMPROMISE – rule 20.26(4), UCPR — offer made after pleadings closed but before discovery and evidence — whether defendant had sufficient information to assess reasonableness of offer — principles at [42]-[46] — defendant had requested and been provided with documents and particulars — as assignee of cause of action, plaintiff a stranger to underlying events – defendant centrally involved – offeree may discover any missing information by making reasonable inquiries. INDEMNITY COSTS – change in plaintiff's case after offer – principles at [55]-[56] — amendments repeated defendant's pleading — unclear why this materially altered the case to be met — indemnity costs ordered. Legislation Cited: Uniform Civil Procedure Rules 2005 (NSW), rr 20.26, 42.14 Cases Cited: CGU Insurance Ltd v Corrections Corporation of Australia Staff Superannuation Ltd [2008] FCAFC 173 Dean v Stockland Property Management Pty Ltd [2010] NSWCA 141 Evans v Baddock (No 2) [2015] NSWSC 518 Hiscox v Woods [2002] QSC 64 Hungry Jack's Pty Ltd v Fourtounas (No 2) [2011] NSWCA 26 James v Surf Road Nominees Pty Ltd (No 2) [2005] NSWCA 296 Jones v Dapto Leagues Club Ltd (No 2) [2008] NSWCA 111 Koprivnjak v Koprivnjak (No 2) [2023] NSWCA 62 Miwa Pty Ltd v Siantan Properties Pte Ltd (No 2) [2011] NSWCA 344 Morgan v Johnson (1998) 44 NSWLR 478 New South Wales Insurance Ministerial Corp v Reeve (1993) 42 NSWLR 100 Rolls Royce Industrial Power (Pacific) Ltd v James Hardie & Co Pty Ltd [2001] NSWCA 461; (2001) 53 NSWLR 626 Ross v Suncorp Metway Insurance Ltd [2002] QCA 93 Shaw v Jarldorn [1999] SASC 529; (1999) 76 SASR 28 Zealley v Liquorland (Australia) Pty Ltd (Costs Ruling) [2015] VSC 133 Texts Cited: G E Dal Pont, Dal Pont on Costs (LexisNexis Butterworths, 5th ed, 2021) Category: Costs Parties: LCM Operations Pty Ltd (Plaintiff) Rabah Enterprises Pty Ltd (Defendant) Representation: Solicitors: Stacks Law Firm (Plaintiff) Bartier Perry (Defendant) File Number(s): 2020/262271