Carraffa and Lofthouse as Joint and Several Trustees of the Bankrupt Estate of Santucci and Santucci v Tile Mart (Vic) Pty Ltd (No.2)

In the matter of *Carraffa and Lofthouse as Joint and Several Trustees of the Bankrupt Estate of Santucci and Santucci v Tile Mart (Vic) Pty Ltd (No.2)*, the Supreme Court of Victoria was asked to determine the appropriate rate of interest to be applied to an award of costs. The applicants, the joint and several trustees of a bankrupt estate, sought to recover costs awarded in their favour against the respondent, Tile Mart (Vic) Pty Ltd.

The central legal issue before the Court was the rate at which interest should accrue on the costs order. Specifically, the Court had to consider whether the interest should be calculated by reference to the prescribed rate under the *Supreme Court (General Civil Procedure) Rules 2015* (Vic) or by reference to a different rate, such as the rate applicable to judgment debts.

Justice Hartnett reasoned that the general rule under the *Supreme Court (General Civil Procedure) Rules 2015* is that interest on costs runs at the prescribed rate. However, the Court also acknowledged that there are circumstances where a different rate may be ordered, particularly where the delay in payment is significant or where the nature of the debt warrants it. In this instance, the Court found no exceptional circumstances to depart from the standard prescribed rate.

Consequently, the Court ordered that interest on the costs awarded to the applicants should accrue at the prescribed rate.