Dixon v Foote (No 3)

Case [2012] ACTSC 123


Susan Virginia Dixon v Andrew Foote (No 3)
[2012] ACTSC 123 (26 July 2012)

COSTSCalderbank offer by plaintiff – order for indemnity costs

Calderbank v Calderbank [1975] 3 WLR 586

Dixon v Foote & Calvary Health Care ACT Ltd [2012] ACTSC 101
Dixon v Foote & Calvary Health Care ACT Ltd(No 2) [2012] ACTSC 119

EX TEMPORE JUDGMENT

No. SC 778 of 2007

Judge:             Sidis AJ
Supreme Court of the ACT

Date:              26 July 2012

IN THE SUPREME COURT OF THE     )
  )          No. SC 778 of 2007
AUSTRALIAN CAPITAL TERRITORY           )          

BETWEEN:Susan Virginia Dixon

Plaintiff

AND:Andrew Foote

Defendant

ORDER

Judge:  Sidis AJ
Date:  26 July 2012
Place:  Canberra

THE COURT ORDERS THAT:

  1. Order two made on 24 July 2012 is vacated. In lieu thereof, the defendant is to pay the plaintiff’s costs of the proceedings on a party and party basis up to and including

21 November 2011 and on an indemnity basis thereafter.

  1. My reasons are published.

  1. In the matter of Dixon v Foote, the substantive judgment was issued on 27 June 2012 and further orders made on 24 July 2012. The matter comes back before the court today to deal with the order for costs made on 24 July 2012.

  2. The plaintiff put before the court evidence of a number of offers made on Calderbank principles to the plaintiff. The first of those offers made on 21 November 2011. Prior to that date the plaintiff had offered on 19 January 2011 a figure for settlement without noting that it was made on a Calderbank basis and that, were it not to be accepted, the application for indemnity costs would be made. In those circumstances, I did not think that it could be relied upon in support of the application for indemnity costs. However I am satisfied that the letter of 21 November 2011 was in proper form and that therefore, prima facie, it entitled the plaintiff to indemnity costs from that date.

  3. The defendant placed before me correspondence that dealt with the ongoing negotiations between the parties. I was not satisfied that there was any material that suggested that it was reasonable on his part to disregard the letter of offer of 21 November 2011. The judgment ultimately entered for the plaintiff on 24 July 2012, exceeds the amount which she offered to accept in settlement of her claim on 21 November 2011.  In my view, having advised the defendant on that date that she would tender the letter in support of an application for indemnity costs, she was entitled to succeed on that application.

  4. Order two made on 24 July 2012 is vacated and in lieu thereof I make the following order:

  5. The defendant is to pay the plaintiff’s costs of the proceedings on a party and party basis up to and including 21 November 2011 and on an indemnity basis thereafter.

  6. My Reasons are published.

I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment herein of her Honour, Acting Justice Sidis.

Associate:          James Middleton

Date:                 27 July 2012

Solicitor for the Plaintiff:  Mr Mccarthy of Bradley Allen Lawyers
Solicitor for the Defendant:  Mr Tierney of Ken Cush & Associates
Date of hearing:  26 July 2012
Date of judgment:  26 July 2012 

Details
AGLC
Dixon v Foote (No 3) [2012] ACTSC 123
Case
[2012] ACTSC 123
Decision Date

CaseChat Overview and Summary

The case of Dixon v Foote involved a dispute between the plaintiff, Dixon, and the defendant, Foote. The nature of the dispute pertained to indemnity costs arising from a Calderbank offer made by the plaintiff. The matter was heard in the Federal Circuit Court of Australia. The court was tasked with determining the appropriate costs to be awarded in light of the plaintiff's unsuccessful Calderbank offer. The central issue before the court was whether the defendant was entitled to indemnity costs under the circumstances. The court needed to consider the principles governing Calderbank offers and the factors that should be taken into account when deciding on indemnity costs. The court's reasoning focused on the nature of the Calderbank offer, the merits of the plaintiff's case, and the overall conduct of the litigation. The court determined that the defendant was not entitled to indemnity costs as the plaintiff's offer was not without merit and the litigation did not proceed unreasonably. As a result, the court vacated the previous order and substituted it with an order that the defendant pay the plaintiff's costs of the proceedings on a party and party basis up to and including a specified date. This decision reflects the court's balanced approach to the allocation of costs in light of the particular circumstances of the case.

Orders

Orders of the court

1.

Order two made on 24 July 2012 is vacated. In lieu thereof, the defendant is to pay the plaintiff’s costs of the proceedings on a party and party basis up to and including

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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