Exceptional circumstances claimed by the defendant
21 The first matter on which the defendant relies in support of its contention that special circumstances exist which make it just that the Court should 'otherwise order' is that during the period in which the offer was open, the plaintiff had not filed any evidence in relation to either liability or quantum. It was not until 3 March 2004 that the defendant filed a statement by Mr Bullock dealing with the particular issues of quantum that were disputed by the defendant, and it was not until 2 and 5 April 2004 that this statement was answered by the plaintiff's experts. The defendant also points to the fact that the plaintiff's discovery was of some magnitude, with over 7000 documents being produced for inspection on 30 April 2003, and a further 186 documents produced on 24 June 2003.
22 Under the Rules, an offer of compromise may be made at any time prior to the giving of a decision in the matter, but the time in which the offer is open to be accepted must be not less than 14 days beginning on the day after the offer is made. There is nothing in the Rules which requires that the proceedings should have reached any particular stage of development before an offer of compromise may be made which will attract the costs consequences for which the Rules provide. For example, there is no reason why an offer of compromise may not be made with the filing of the Statement of Claim, and there is every reason for encouraging offers of compromise to be made as early as the circumstances reasonably permit.
23 The defendant's submissions imply that the defendant was in possession of insufficient information at the time when the offer was open to make an informed choice as to whether or not to accept the offer, and that this is a sufficient reason for the Court to 'otherwise order'. My attention was not directed to any case which establishes any general principle to this effect. There are a number of other problems associated with the submission. First, the defendant does not contend, nor could it successfully contend, that any informational deficiency from which it was suffering at the relevant time was due to any default on the part of the plaintiff. Orders for discovery, inspection and the provision of witness statements were only made later in the piece. Second, the defendant invites me to infer that it had insufficient information in the period when the offer was open, and, in particular, insufficient information in relation to the cost of repairs to the damaged berth, to make an informed choice as to whether to accept the offer or not, but without adducing any direct evidence to that effect. I am not prepared to draw inference to that effect without direct evidence, particularly having regard to the fact that Sinclair Knight, Merz ('SKM'), a firm of engineers appointed by the defendant, were closely involved with the repair project from shortly after the collision took place, and from April 2002 SKM staff were allowed by the plaintiff to visit the terminal three times a week, and were briefed weekly as to the progress of the remedial work. Between June and December 2002 the defendant's solicitors were provided with various reports and other documents in relation to the repair work and the cost of undertaking that work. A number of these documents were provided in response to requests from both the defendant's engineers and solicitors. In addition, in January 2003 the defendant's solicitors were given, and took advantage of, an opportunity to inspect documents held by the plaintiff's site manager, and a meeting occurred at which the defendant's solicitors and SKM were briefed as to the manner in which the repair and restoration works at the terminal were undertaken.
24 Third, the defendant's submission implies that any informational deficiency from which it was suffering was not referable to any failure on its part to make a realistic assessment of the case which it had to meet, on the basis of the best information then available to the defendant. Again, the evidence does not establish the matter on which the defendant now relies. There is no direct evidence to this effect, nor is there any evidence that at the relevant time the defendant sought any further information from the plaintiff in order to enable the defendant to assess the plaintiff's claim properly. So far as the evidence goes, the defendant simply ignored the plaintiff's proposals that the technical experts should meet with a view to reaching agreement on the issue of quantum.
25 The defendant has failed to demonstrate that its non-acceptance of the offer was referable to any informational deficiency, let alone that any such deficiency was caused by the plaintiff, or not contributed to by the defendant.
26 The second argument on which the defendant relies is that the plaintiff's claim changed during the relevant period. The plaintiff originally particularised its damages claim at $17,496,000 of which $2 million was described as 'loss of profits and related expenses'. The defendant contended that the $2 million component of the claim was not maintainable, which position was ultimately accepted by the plaintiff on 23 March 2004, when it provided new particulars of its claim which was reduced to $16,171,894.24. The defendant's submissions do not explain why it is that this change in the plaintiff's claim to accommodate an objection raised by the defendant provides a sufficient foundation for the Court to 'otherwise order', particularly as the defendant does not assert that its response to the offer was in any way influenced by the fact of this claim. As a consequence, I find this argument to be without merit.
27 The defendant also made two subsidiary arguments. The first pointed to the fact that there was only a 6.8 per cent difference between the offered amount and the amount ultimately awarded. In the defendant's submission, the premium would have disappeared had it been successful in its claim for betterment or contributory negligence. The second argument, which was only advanced in oral submissions, was that this was a test case, and that for some reason this bears upon the exercise of the Court's discretion.
28 The first argument blurs the distinction between an offer of compromise under Order 53, and a Calderbank offer. In the case of a Calderbank offer, the issue is whether the conduct of the defendant in failing to accept the offer was unreasonable in all of the circumstances, so as to justify a departure from the usual rule as to costs. However, as the authorities referred to above decide, in the case of an offer of compromise, the mere fact that the defendant's case was 'bona fide and arguable', to adopt the language used in the defendant's submissions, is not of itself sufficient to displace the operation of the Rule. In any event, even if such an argument was capable of assisting the defendant, the plaintiff's claim only failed to the extent of $13,000; hardly an amount capable of making good an argument that the defendant came close to bettering the offer.
29 The second argument should also not be accepted. The plaintiff's case against the defendant was principally a facts case involving an allegation of negligence on the part of the defendant arising from a collision between a ship and a berth. No issue of general principle arose between the plaintiff and the defendant. The fact that both parties made offers of compromise is consistent with this proposition.
30 A costs order should be made in the terms sought by the plaintiff.