Blanda v Forno

The case of Blanda v Forno arose in the Supreme Court of New South Wales, involving a dispute between the plaintiff, Blanda, and the defendant, Forno. The plaintiff claimed interest on the principal amount of a judgment debt, entitlement to intermediate income from a specific legacy, and sought damages for delay in settlement of a property purchase. Additionally, the case addressed the interpretation of contractual obligations between the vendor and purchaser regarding payment of legal costs and Capital Gains Tax, and the assessment of costs in a gross amount.

The legal issues before the court included determining the point at which the cause of action accrued for the award of interest on a judgment debt, the rationale behind the entitlement to intermediate income from a specific legacy, the construction of a contractual clause mandating the simultaneous payment of certain costs and taxes at transfer, and the date from which damages for delay in settlement should be calculated. Furthermore, the court had to consider the appropriateness of assessing costs in a gross amount.

The court found that the cause of action for the award of interest accrued from the date of the judgment, rather than from the date the underlying debt was due. Regarding the specific legacy, the court held that the plaintiff was entitled to the intermediate income, as the rationale for the rule supported such entitlement. The clause in the contract mandating the simultaneous payment of legal costs and Capital Gains Tax was construed to mean that these obligations were to be fulfilled at the time of transfer, regardless of the settlement date. As for the damages for delay in settlement, the court ruled that they should be calculated from the date the settlement was due, rather than the date of the judgment. Finally, the court determined that assessing costs in a gross amount was appropriate in this case due to the nature of the proceedings.

The final orders of the court included the award of interest on the principal amount of the judgment debt, entitlement to intermediate income from the specific legacy, and damages for delay in settlement. The court also directed that costs were to be assessed in a gross amount.