New South Wales Court of Appeal CITATION : Roads and Traffic Authority of New South Wales v Dimitrovski (No 2) [2002] NSWCA 117 FILE NUMBER(S) : CA 40213/01 HEARING DATE(S) : 11 February 2002 JUDGMENT DATE : 11 February 2002 PARTIES : Roads and Traffic Authority of New South Wales (Appellant) Kire Dimitrovski (Respondent) JUDGMENT OF : Beazley JA at 1; Stein JA at 1; Young CJ in Eq at 1 LOWER COURT JURISDICTION : District Court LOWER COURT 3672/99 FILE NUMBER(S) : LOWER COURT Williams DCJ JUDICIAL OFFICER : COUNSEL : J A McIntyre SC/S M Kettle (Appellant) W P Kearns SC/E G Romaniuk (Respondent) SOLICITORS : Hunt & Hunt Lawyers (Appellant) Keddies (Respondent) CATCHWORDS : Costs - Indemnity Costs LEGISLATION CITED : District Court Rules 1973 (NSW) Fotheringham v Fotheringham (No 2) (1999) 46 NSWLR 194 CASES CITED: Ettingshausen v Australian Consolidated Press Limited (1995) 38 NSWLR 404 South Sydney Council v Morris (No 3) [2001] NSWCA 200 Woolage v The State of New South Wales [2001] NSWCA 256 DECISION : Indemnity costs not awarded IN THE SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL CA 40212/01 BEAZLEY JA STEIN JA YOUNG CJ in EQ Monday, 11 February 2002 ROADS AND TRAFFIC AUTHORITY OF NEW SOUTH WALES v KIRE DIMITROVSKI JUDGMENT (On Application For Costs) 1 THE COURT: In this matter the Court has dismissed the appeal. Consequent upon making that order an application was made by the respondent that the costs of the appeal be paid on an indemnity basis. 2 The basis of the application was that an offer of compromise was made in the District Court proceedings prior to trial and the result of not only the District Court proceedings, but of the appeal is that the award of damages in the respondent's favour is in excess of the offer contained in the offer of compromise. 3 The question of indemnity costs on appeal has been considered by this Court on a number of occasions. The Court was referred to the decision of this Court in Fotheringham v Fotheringham (No 2) (1999) 46 NSWLR 194. That case considered the Court's earlier decision in Ettingshausen v Australian Consolidated Press Limited (1995) 38 NSWLR 404. Both of those cases involved proceedings which had been commenced and wholly conducted within the Supreme Court. 4 The question of the appropriate rules and principles to apply in circumstances where proceedings commenced and determined at first instance in the District Court was considered by the Court of Appeal in South Sydney Council v Morris (No 3) [2001] NSWCA 200. There Heydon JA (Meagher JA and Fitzgerald AJA agreeing) pointed out that Pt 39A r 25(4) of the District Court Rules (1973) NSW, under which offers of compromise are made in the District Court, cannot apply in terms to the costs of the appeal. In respect of appeals coming from the District Court, this Court has inherent power to make, as a matter of discretion, an indemnity costs order. 5 Accordingly, the Court can treat the application for indemnity costs in this matter as being made on that basis. 6 The Court has considered the application but has determined it is not an appropriate case for the award of indemnity costs. The appeal was unsuccessful and the Court was able to deal with it within a fairly short compass for a number of reasons. However, it cannot be said that the points taken on appeal were so unarguable that the appeal ought not to have been brought, both in relation to liability and future economic loss. 7 We do note that the appellant strictly would have been successful on the point of law under Woolage v The State of New South Wales [2001] NSWCA 256, but we do not think that was a significant matter in our determination, given the concession in relation to damages. 8 In conclusion, we consider the appeal was one which was arguable, although not successful and, therefore, the usual costs order should apply. ******** DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.