Walker v Harwood [2017] NSWCA 228

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Walker v Harwood [2017] NSWCA 228 Hearing dates: 20 June 2017 Decision date: 07 September 2017 Before: Basten JA at [1]; Macfarlan JA at [37]; Payne JA at [73] Decision: (1) Grant the applicants leave to appeal from the orders made in the Equity Division on 25 November 2016.

(2) Allow the appeal.

(3) Set aside orders 3 and 4 made in the Court below and in lieu thereof order that:

(3) The costs of the proceedings up to and including 10am on 23 May 2016 be paid out of the estate of the deceased on an indemnity basis.

(4) The defendants pay the costs of the plaintiff from 10am on 23 May 2016 on an indemnity basis.

(4) No order as to the costs of the parties in this Court, so that each party must bear their or her own costs. Catchwords: COSTS – Calderbank offers – respondent made a Calderbank offer on terms less favourable to the respondent than the result the respondent obtained by judgment – whether it was unreasonable for the applicants to reject the Calderbank offer – whether the respondent's costs should be paid by the applicants on the indemnity basis from the day after the date of expiration of the Calderbank offer

COSTS – offers of compromise – application of r 42.14 Uniform Civil Procedure Rules 2005 – circumstances in which a court should exercise its discretion to "order otherwise"

COSTS – probate actions – exceptions to the principle that "costs follow the event" Legislation Cited: Civil Procedure Act 2005 (NSW), Pt 6 Div 1, s 98 Succession Act 2006 (NSW), Pt 3.2 Supreme Court Rules 1970 (NSW), Pt 22, Pt 52 r 17 Trustee Act 1925 (NSW), s 63 Uniform Civil Procedure Rules 2005 (NSW) rr 20.26. 42.1, 42.14 Cases Cited: Banks v Goodfellow (1870) LR 5 QB 549 Barakat v Bazdarova [2012] NSWCA 140 Bull v Felton (1941) 66 CLR 295 Calderbank v Calderbank [1975] 3 WLR 586 Estate Sue [2016] NSWSC 721 Graham v Kahler (17 July 1991, unrep; BC 9101779) Houatchanthara v Bednarczyk [1996] NSWCA 253 Maitland Hospital v Fisher [No 2] (1992) 27 NSWLR 721 Miwa Pty Ltd v Siantan Properties Pty Ltd (No 2) [2011] NSWCA 344 Morgan v Johnson (1998) 44 NSWLR 578 New South Wales Insurance Ministerial Corporation v Reeve (1993) 42 NSWLR 100 Phillips v Phillips (No 3) [2017] NSWSC 409 Regency Media Pty Ltd v AAV Australia Pty Ltd [2009] NSWCA 368 Re Hodges (1988) 14 NSWLR 698 Revie v Druitt [2005] NSWSC 965 Shorten v Shorten (No 2) [2003] NSWCA 60 Soulemezis v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 247 Texts Cited: G E Dal Pont and Mackie, Law of Succession, (2013, Butterworths) Category: Principal judgment Parties: David Channon Walker (First Applicant) Christopher Channon Walker (Second Applicant) Jay Lily Harwood (Respondent) Representation: Counsel: L Ellison SC (Applicants) J Needham SC / R Bianchi (Respondent)