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Barron v Louw [2017] NZDC 29042

Published 03 July 2019

Application for costs — indemnity costs — increased costs — 2B costs — duration of trial — walk away offer — Calderbank offer — Bradbury v Westpac Banking Corp [2009] 3 NZLR 400 — Easton Agriculture Ltd v Manawatu-Whangarei Regional Council HC Palmerston North CIV-2008-454-31. The Court was asked to determine a costs application. Costs were sought primarily on the basis of indemnity costs, failing that, increased costs, and in the event that both claims fail, costs assessed on a 2B basis. The Court found that the trial was not a "short trial" as it exceeded one day, and proceeded to determine the issue of costs as for a two day "full trial". The claim for indemnity costs failed as it was not based on any of the five categories as set out in "Bradbury v Westpac"; the claim was instead based on a refusal by the plaintiff to accept a "walk away" or "Calderbank" offer. The Court was further satisfied that the refusal to accept the Calderbank offer did not justify an award of increased costs as the issue was a legal one that required careful consideration and the plaintiff was entitled to rely on the advice of an expert that they had retained. As the claim for indemnity costs and increased costs had both failed, costs were to be awarded on a 2B basis. Judgment Date: 21 December 2017.

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