Rejecting a settlement offer left this employee owing over $6,000 in costs
On 14 September 2026, Authority Member Helen van Druten ordered an applicant to pay Portland Horticulture's costs over a rejected settlement offer.
The costs order follows a ruling on 18 June 2026, when the Employment Relations Authority rejected the applicant's claims against Portland Horticulture (2021) Limited and a second respondent. The Authority left costs open at the time, hoping the two sides would sort it out between themselves. They could not, and by late July 2026 both parties had filed formal costs submissions.
Portland Horticulture, through its lawyer, asked for $4,500 as a contribution to its costs for the one day investigation meeting held in Auckland in April 2026, plus a top up on that figure and $517.50 for translation costs. The company said the applicant's case had no proper basis, that he had turned down a genuine offer to settle, and that fighting the claims had cost far more than what it was asking for.
The applicant pushed back. He told the Authority he had acted in good faith, that his case was not frivolous given the Authority's own ruling had pointed to inconsistencies in Portland's advertising and communications that had created uncertainty for him, and that turning down a settlement offer does not automatically mean a costs increase. He also raised his limited financial circumstances, which the Authority accepted even without supporting paperwork.
Working from the Authority's standard daily rate of $4,500 for a first hearing day, Member van Druten found no reason to lower that starting point, noting both sides knew the potential costs before the investigation meeting went ahead.
The bigger question was a Calderbank offer, essentially a formal settlement offer that can affect a later costs order if it is turned down unreasonably. Portland had offered, on 10 July 2025, to settle everything for $4,500 without admitting liability, while the applicant still had legal representation. The offer stayed open for 14 days and spelled out what would happen if it was declined.
The Authority found the offer was valid and made well before the investigation meeting and before any real costs had built up, and that the applicant would have come out ahead financially had he accepted it. Member van Druten agreed with Portland that “the rejection of an early and very reasonable Calderbank offer” without weighing up the chances of success had driven up both sides' legal bills, and that a top up to the costs was warranted.
She settled on an extra $1,000, calling it “a moderate and appropriate amount” on top of the $4,500 daily rate. The $517.50 in translation costs was also allowed in full.
The Authority ordered the applicant to pay Portland Horticulture $6,017.50 in total, made up of $5,500 towards its costs and the $517.50 disbursement, within 28 days of the determination.
