Buildom Pty Ltd v Rawson Constructions NSW Pty Ltd & Ors; Buildom Pty Ltd v Everton Constructions NSW Pty Ltd & Anor (Costs)

[2026] NSWSC 338

Supreme Court of NSW

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Interrogate

Catchwords

1. COSTS — indemnity costs orders sought by reason of rejection of Calderbank offer — whether offer contained genuine compromise — whether dismissing proceedings with no order as to costs constitutes a genuine compromise — whether failure to accept was reasonable — indemnity costs order granted

Quick Take

The Court ordered indemnity costs from the date of a rejected Calderbank offer where the plaintiff's case had fundamental weaknesses apparent at the time of the offer, all evidence had been served, and the final outcome was substantially worse than the offer's terms. The Court held that a Calderbank offer requiring mutual dismissal with no order as to costs constituted a genuine compromise notwithstanding an asymmetric reservation of the defendants' rights to pursue statutory warranty and third-party claims, because the primary judgment would not have precluded such claims in any event. The Court declined to reduce a co-defendant's recoverable costs by 50% despite aligned interests with other defendants, finding that separate representation was reasonable where adverse findings could have had distinct economic consequences for different shareholders.