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FEDERAL COURT RULES 2011 (SLI NO 134 OF 2011) - RULE 25.14

Costs where offer not accepted

         (1)   If an offer is made by a respondent and not accepted by an applicant, and the applicant obtains a judgment that is less favourable than the terms of the offer:

                (a)    the applicant is not entitled to any costs after 11.00 am on the second business day after the offer was served; and

               (b)    the respondent is entitled to an order that the applicant pay the respondent's costs after that time on an indemnity basis.

         (2)   If an offer is made by a respondent and an applicant unreasonably fails to accept the offer and the applicant's proceeding is dismissed, the respondent is entitled to an order that the applicant pay the respondent's costs:

                (a)    before 11.00 am on the second business day after the offer was served -- on a party and party basis; and

               (b)    after the time mentioned in paragraph (a) -- on an indemnity basis.

         (3)   If an offer is made by an applicant and not accepted by a respondent, and the applicant obtains a judgment that is more favourable than the terms of the offer, the applicant is entitled to an order that the respondent pay the applicant's costs:

                (a)    before 11.00 am on the second business day after the offer was served -- on a party and party basis; and

               (b)    after the time mentioned in paragraph (a) -- on an indemnity basis.

Note 1   Costs on an indemnity basis is defined in the Dictionary.

Note 2    The Court may make an order inconsistent with these rules -- see rule 1.35.



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