Port Stephens Shire Council & Anor v Tellamist Pty Ltd (No 2) [2004] NSWCA 415

New South Wales Court of Appeal

CITATION : Port Stephens Shire Council & Anor v Tellamist Pty Ltd (No 2) [2004] NSWCA 415 HEARING DATE(S) : 18, 19 February 2004 JUDGMENT DATE : 16 November 2004

JUDGMENT OF : Giles JA at 1; Santow J at 31; Ipp JA at 32 DECISION : (1) Appeal allowed; (2) Set aside the judgment and orders of Bergin J and in lieu thereof order: (a) judgment for the plaintiff against the defendants in the sum of $1,000; (b) subject to (c), defendants pay the plaintiff's costs of the proceedings up to and including 6 December 2002 and plaintiff to pay the defendants' costs of the proceedings from 6 December 2002 on a party and party basis; (c) confirm the order of Bergin J as to costs thrown away by the abandonment of defences and the first defendant's cross-claim on 21 February 2003; (3) Cross-claim dismissed; (4) Respondent pay the appellants by way of restitutionary interest the sum of $64,026.76; (5) Respondent pay the appellant's costs of the appeal and have a certificate under the Suitors Fund Act if otherwise qualified.

CATCHWORDS : Costs - offer of compromise - whether effective under Rules - whether to order otherwise - whether also had effect as Calderbank offer - whether unreasonably rejected. D Assaf v Skalkos [2000] NSWSC 935; Beregold v Mitsopoulos (Cole J, 5 November 1992, unreported); Diamond v Simpson (No 2) [2003] NSWCA 78; Ettingshausen v Australian Consolidated Press (1995) 28 NSWLR 404; Fisher v McDonald (CA, 20 November 1998, unreported); Fotheringham v Fotheringham (No 2) (1999) 46 NSWLR 194; Hetherington v Mirvac Pty Ltd [1999] NSWSC 515; Houatchanthara v Dednarczyk (CA, 14 October 1996, unreported); Jones v Bradley (No 2) [2003] NSWCA 258; CASES CITED : Leichhardt Municipal Council v Green [2004] NSWCA 341; Morgan v Johnson (1998) 44 NSWLR 578; Multiplex Constructions Pty Ltd v HSH Hotels (Australia) Pty Ltd [2003] NSWSC 1069; New South Wales Insurance Ministerial Corporation v Reeve (1993) 42 NSWLR 102; Patrick Stevedores (No 1) Pty Ltd v Vaughan [2002] NSWCA 422; Port Stephens Shire Council v Tellamist Pty Ltd [2004] NSWCA 353; Rolls Royce Industrial Power (Pacific) Ltd v James Hardie (2001) 53 NSWLR 626; SMEC Testing Services Pty Ltd v Campbelltown City Council [2000] NSWCA 323; South Sydney Council v Morris (No 3) [2001] NSWCA 200; State Authorities Superannuation Board v Property Estates (Qld) Pty Ltd (1981) 11 BCL 28; TCN Channel 9 Pty Ltd v Antoniadis (No 2) (1999) 48 NSWLR 381. Port Stephens Shire Council - First Appellant PARTIES : Daracon Engineering Pty Ltd - Second Appellant Tellamist Pty Ltd - Respondent FILE NUMBER(S) : CA 40395/03 COUNSEL : G Inatey SC & A A Henskens - Appellants R J Ellicott QC & J S Drummond - Respondent SOLICITORS : Cantle Carmichael - Appellants Hartmann & Associates - Respondent