Clough v Breen (No.7)

The parties in Clough v Breen were the plaintiff, Clough, and the defendant, Breen. The dispute concerned the adjustment of costs orders, specifically a specified gross sum cost order, following a decision of the Court of Appeal overturning part of the Court’s prior judgments at first instance. The matter was heard in the Supreme Court of New South Wales.

The primary legal issue was whether, and if so how, the costs orders should be adjusted under section 98(4)(c) of the Civil Procedure Act 2005 in light of the Court of Appeal's decision. Another issue was whether interest should run on a Local Court judgment that was subject to a temporary stay on enforcement, when no order was made that interest should not run under section 101(4) of the same Act. The court had to determine what adjustments, if any, were necessary to the existing costs orders and whether interest should be applied to the judgment in question.

The court examined the relevant statutory provisions and found that the adjustments to the costs orders should reflect the Court of Appeal's decision, ensuring that the orders were consistent with the outcome of the appeal. The court held that, in the absence of an explicit order to the contrary, interest should not run on the Local Court judgment during the period of the temporary stay on enforcement. The court balanced the need for fairness in the costs adjustment with the statutory provisions governing interest on judgments.

The court ordered that the costs orders be adjusted to reflect the decision of the Court of Appeal and that no interest should run on the Local Court judgment during the period of the temporary stay on enforcement. The specific adjustments made to the costs orders were detailed in the judgment, ensuring clarity and compliance with the statutory requirements.