The Court of Appeal declined to award indemnity costs on appeal notwithstanding that the respondent had made a District Court offer of compromise that exceeded the final damages award. The Court confirmed that Pt 39A r 25(4) of the District Court Rules does not apply in terms to costs of an appeal, but that the Court of Appeal has inherent power to make an indemnity costs order as a matter of discretion in appeals from the District Court. On the facts, the appeal points on liability and future economic loss were arguable, even though unsuccessful, and the usual party-party costs order applied.
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