The Federal Court has continued its run of decisions on contested costs orders. The cost of litigating patent disputes in the Federal Court is high. To maximise the costs recovered, parties are issuing Notices of Offer (pursuant to the Federal Court Rules) and Calderbank letters. These are designed to put the other party at risk of an indemnity costs order should they reject the offer and the first party ultimately receives a more favourable judgment. Indemnity costs orders enable a successful party to claw back up to 100% of their legal costs, whereas a party/party costs order typically only provides a successful party with around 60% of their actual legal costs. So, significant sums of money can be at stake as a result of an effective or ineffective Notice of Offer or Caldberank letter.
Show Me the Money!
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