Pauatahunui General Store Ltd v Albert Ng [2017] NZDC 8183

Published 11 August 2017

Costs — Calderbank letter — District Court Rules 2014 rr 14.6, and 14.10. The defendants sought increased costs as they had sent a Calberbank letter to the plaintiffs. The issue the court had to determine is whether or not the Calderbank letter should result in increased costs and, if so, whether they should be increased by 90% or some other percentage. The court discussed the factors that were to be taken into account when deciding whether or not the rejection of a Calderbank offer was reasonable. These included timeliness of when the offer is made, time for consideration, and the extent of compromise offered. The court noted that the Calderbank letter was generous in light of the deficiencies in the plaintiff's claim and that the defendants could have sought indemnity costs. The court found that the Calderbank letter should have been accepted and ordered that the plaintiff pay the defendants a total of $36,018.30 for costs together with disbursements. Judgment Date: 13 March 2017