Botany Bay Apartments Pty Ltd v Badolato (No. 2)

Botany Bay Apartments Pty Ltd, the plaintiff, sought to recover deposits paid by purchasers under contracts for the sale of apartments. The defendant, Badolato, was the developer and vendor of the apartments. The dispute centred around the jurisdiction of the District Court to hear the proceedings, the appropriateness of costs awarded on the ordinary basis, and the recoverability of interest on the deposits. The case was heard in the Supreme Court of New South Wales.

The court had to decide whether the District Court had jurisdiction to hear the proceedings for the recovery of deposits. The plaintiff argued that the proceedings should have been commenced in the Supreme Court as the amount claimed exceeded $500,000, while the defendant contended that the District Court had jurisdiction. The court also had to determine if costs should be awarded on the ordinary basis, given that the defendant submitted that the proceedings should have been commenced in the District Court. Finally, the court had to decide whether interest could be recovered on the deposits, despite an agreement that no interest would be payable.

The court held that the District Court did not have jurisdiction to hear the proceedings as the amount claimed exceeded $500,000, and the Supreme Court had exclusive jurisdiction over such claims. Despite the defendant's submission that no costs should be awarded, the court found that the defendant had not objected to the proceedings being maintained in the Supreme Court and had not sought a transfer. Therefore, costs were awarded on the ordinary basis. The court also ruled that interest was recoverable on the deposits, as the agreement waiving interest was unenforceable due to the defendant's breach of contract.

The Supreme Court ordered that costs be awarded on the ordinary basis and that interest be payable on the deposits from the date of the judgment.