Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 6)

The matter of Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 6) involved a dispute between the Bathurst Regional Council and Local Government Financial Services Pty Ltd (LGFS). The dispute arose out of a previous litigation where LGFS had been ordered to pay a certain amount to the Council. The Federal Court of Australia was tasked with resolving several ancillary issues that had not been addressed in the initial proceedings, including questions of pre-judgment interest and the allocation of costs.

The primary legal issues before the court were whether pre-judgment interest should be awarded, and if so, at what rate, and also how costs should be apportioned among the parties. The court had to consider the statutory provisions and case law governing pre-judgment interest, as well as the practice notes issued by the Federal Court. The court also needed to determine whether any of the parties were entitled to an apportionment of costs.

The court began by examining section 51A of the Federal Court of Australia Act 1976, which outlines the circumstances under which pre-judgment interest can be awarded. It was noted that pre-judgment interest is not automatic and must be specifically ordered by the court. The court considered the rates recommended by the Discount and Interest Rate Harmonisation Committee and determined that these rates should be applied unless good cause was shown to the contrary. The court also examined Practice Note CM 16, which provides guidance on the application of pre-judgment interest. It concluded that the pre-judgment interest should be calculated based on the rates set out in the practice note, and awarded it accordingly. Regarding the costs, the court found that the Council was entitled to an apportionment of costs, but it was to be determined in a separate proceeding.

In summary, the court awarded pre-judgment interest in accordance with section 51A and Practice Note CM 16, and determined that the issue of costs would be dealt with separately.