Offer of compromise made after proceeding was finalised

High Court. The Respondent was successful in defending a an application for special leave to appeal from the Full Court of the Federal Court, with costs. The Respondent then made an offer of compromise, demanding payment of a reduced amount of the costs it was entitled to claim pursuant to the High Court scale of costs. Was the offer valid, with the result that the applicant is required to pay costs on an indemnity basis?

The High Court answered that question as follows:

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