A defendant's unreasonable failure to make or accept settlement offers in defamation proceedings will attract indemnity costs under s 38 of the Defamation Act 2005 (SA) even where the damages award is substantially reduced on appeal, provided the reduced award still exceeds the plaintiff's filed offer. Section 38 does not apply to appellate proceedings. The Magistrates Court costs formula in rule 106(1)(a) is a default position that gives way to rule 58/59 (offers to settle) and s 38 of the Defamation Act.
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