Clarke v Nationwide News Pty Ltd trading as the Sunday Times (No 2)

In Clarke v Nationwide News Pty Ltd trading as the Sunday Times (No 2), the applicant sought damages for alleged racial discrimination in publications by the respondent. The matter was heard by the Federal Court, and on 27 March 2012, the Court delivered judgment in favor of the applicant, ordering the respondent to pay damages for the offence, insult, and humiliation suffered by the applicant. The Court also addressed the issue of pre-judgment interest and costs.

The primary legal issues that the Court had to decide included the calculation of pre-judgment interest and the appropriate costs order. The Court was asked to determine the level of pre-judgment interest to be applied to the damages awarded, as well as the appropriate costs order in light of the respondent's extensive preparation and response to the case. The Court was also required to consider the nature of the applicant's claims and whether they constituted a single cause of action.

In its judgment, the Court found that the agreed level of pre-judgment interest of 8.63% pa over 3.5 years on $12,000 equated to $3,624.60. Consequently, the Court ordered the respondent to pay damages in the sum of $15,624, inclusive of pre-judgment interest. The Court also considered the appropriate costs order, acknowledging the respondent's significant preparation in responding to the allegations but ultimately deciding against a mathematical-type calculation of the costs. Instead, the Court opted for a more general costs order, taking into account the overall nature of the case and the limited deviation from the essence of the case put by the applicant. The Court did not consider a proportional costs order or a rough percentage deduction to be appropriate in this instance.