COSTS — plaintiff discontinues defamation proceedings on the last day of the trial, asserting health issues prevent him from continuing — two prior jury trials aborted because the plaintiff collapsed whilst in the courtroom — defendants’ application for indemnity costs of all trials — offers made by both parties — interaction of s 40 Defamation Act 2005 (NSW) with general costs principles — application for indemnity costs refused — fees outstanding under s 10 Civil Procedure Regulation 2017 (NSW) waived
Quick Take
1Under s 40 of the Defamation Act 2005 (NSW), settlement offers must be assessed holistically under s 40(2)(a), taking into account the conduct of both parties including whether the opposing party made any offer; where a defendant's offers require total capitulation and the plaintiff has made reasonable counter-offers, the defendant's offers will not satisfy s 40 so as to warrant indemnity costs.
2Where s 40 of the Defamation Act 2005 (NSW) governs the costs regime, a defendant cannot circumvent an unsuccessful s 40 application by recharacterising the same offers as Calderbank offers to obtain indemnity costs on common law principles, as this would undermine the statutory scheme.
3A plaintiff's medical unfitness to continue litigation does not override or 'trump' the operation of s 40 costs provisions; even incontrovertible evidence of health risks from continuing proceedings does not of itself preclude costs orders in civil cases, and conflicting medical evidence — even if suggestive of dishonesty — is insufficient alone to establish abuse of process warranting indemnity costs.
Case Details
Citation[2026] NSWDC 265
CourtNSWDC
JurisdictionNew South Wales
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