Ambulance Service of New South Wales v Worley (No 2)

The Court of Appeal of New South Wales considered an application for costs and restitution following a successful appeal by the Ambulance Service of New South Wales against Mr Worley. The dispute concerned the appropriate basis for calculating costs and interest following a judgment that had been varied on appeal.

The primary legal issues before the court were whether the plaintiff's rejection of settlement offers made by the defendant was reasonable, and the proper application of costs rules, specifically Part 52A, r 22(6) of the Supreme Court Rules (1970) and r 42.14 of the Uniform Civil Procedure Rules, in circumstances where judgment was entered for the defendant. Additionally, the court had to determine the appropriate interest rate for a sum ordered to be repaid by way of restitution, considering whether it should be calculated according to the Uniform Civil Procedure Rules or as the 'real cost of money' assessed at the rate for bonds issued by the NSW Treasury Corporation.

The court found that the plaintiff's rejection of the settlement offers was unreasonable, leading to a decision to award costs on an indemnity basis for the appeal from a specified date. Regarding restitution, the court ordered the repayment of a sum with interest calculated at 9% per annum, or such other rate as prescribed by Schedule 5 to the Uniform Civil Procedure Rules, acknowledging the principle of compensating for the real cost of money. The court varied the original costs order to reflect these findings and added specific orders for restitution and interest.