Assafiri v The Shell Company of Australia Limited

The case of Assafiri v The Shell Company of Australia Limited involved a dispute regarding damages and interest awarded in relation to a breach of contract and the provisions of a lease. The matter was heard in the Supreme Court of New South Wales. The plaintiff, Assafiri, sought to recover damages for breach of contract and provisions of a lease, along with interest on those damages. The defendant, The Shell Company of Australia Limited, contested the amount of interest and the plaintiff's entitlement to indemnity costs.

The court was required to determine whether the interest on damages should be calculated in accordance with the Uniform Civil Procedure Rules or clause 15.2 of the lease. Additionally, the court had to decide whether the damages for breach of contract and provisions of the lease fell within clause 15.2 of the lease, and whether the plaintiff was entitled to indemnity costs. The court considered the construction of the lease and whether the defendant's conduct of the proceedings exhibited the necessary delinquency to warrant indemnity costs.

The court held that interest should be calculated in accordance with the Uniform Civil Procedure Rules rather than clause 15.2 of the lease. It found that the damages for breach of contract and provisions of the lease did not fall within clause 15.2. The court also determined that the plaintiff was not entitled to indemnity costs due to the defendant's conduct not exhibiting the necessary delinquency. Regarding interest on costs, the court found no question of principle.

The court ordered that interest on the damages should be calculated in accordance with the Uniform Civil Procedure Rules, and that the plaintiff was not entitled to indemnity costs. The plaintiff was, however, entitled to interest on the costs awarded.