Fang v Sun (No 2)

The case of Fang v Sun (No 2) involved a dispute between the parties regarding costs and interest in a legal matter that had been previously adjudicated. The court was tasked with determining whether the defendant's misconduct warranted the award of indemnity costs to the plaintiff and whether interest should be applied at an ordinary or compound rate. The case was heard in the relevant Australian court, where the judge considered the conduct of the parties and the applicable legal principles.

The legal issues before the court included whether the defendant's conduct justified the award of indemnity costs to the plaintiff and, if so, at what rate interest should be applied. The court considered the general rule that costs follow the event and the principle that where a party is found to be in dishonest breach of a fiduciary duty, interest may be claimed at a higher rate. The court also considered the plaintiff's acknowledgment that $11,000 should be deducted from the judgment sum and reserved for further consideration the question of whether a further sum of $50,000 should be included in the judgment sum.

After considering the conduct of the parties and the applicable legal principles, the court determined that the defendant's misconduct justified the award of indemnity costs to the plaintiff. The court also determined that interest should be applied at a higher rate due to the defendant's dishonest breach of fiduciary duty. The court ordered that the interest be applied at a compound rate. Finally, the court adjusted the judgment sum by deducting $11,000 and reserving for further consideration the question of whether a further sum of $50,000 should be included in the judgment sum.