Event and Time
Event Description
The case involves an application by Gunns Plantations Limited (in liquidation) and Gunns Limited (in liquidation) to order the plaintiffs to pay their costs of proceedings initiated by the plaintiffs. The proceedings were initially subject to various Calderbank offers to settle, which the plaintiffs did not accept. Subsequently, the court revoked the plaintiffs' leave to continue proceedings against the defendants due to insolvency, leading to a ruling on cost orders.
Application and Claims
- The first and second defendants sought an order for costs on the grounds that:
- The general rule is that costs follow the event, with the revocation of leave considered an event. - The plaintiffs acted unreasonably by not accepting the Calderbank offers.
- The plaintiffs opposed the application, arguing:
- They were unaware that the Chartis policy was the only available insurance. - The amounts in the Calderbank offers were uncertain. - Accepting the offers could compromise their claims against other parties, such as KPMG. - They did not act unreasonably given the context of the ongoing proceedings.
Judicial Decisions
The court ruled that no order for costs would be made, allowing the parties to bear their own costs.
Dispute Points and Legal Basis
Dispute Points
Defendants' Arguments:
- General Rule on Costs: Asserted that costs should follow the event, which they argued was the revocation of leave to proceed.
- Unreasonable Non-Acceptance of Offers: Claimed that the plaintiffs' refusal to accept the Calderbank offers was unwarranted given the clear financial limitations of the defendants.