Grima v RFI (Aust) Pty Ltd

In the matter of Grima v RFI (Aust) Pty Ltd, the court was asked to determine the appropriate period for which post-judgment interest should be awarded in the context of a judgment debt. The plaintiff, Grima, had successfully sued the defendant, RFI (Aust) Pty Ltd, and was awarded a sum of money. After the judgment was entered, RFI offered to pay the judgment sum, which Grima refused. Subsequently, the judgment sum was increased on appeal, and RFI paid the increased amount to Grima. Grima sought post-judgment interest from the date of the original judgment to the date of payment, while RFI argued for interest only from the date of payment to the date of satisfaction, or alternatively, at a lesser rate.

The primary legal issue before the court was whether the rejection of the tender of payment by the plaintiff constituted an accord and satisfaction, thereby affecting the accrual of interest, and if not, whether the interest should be calculated from the date of the original judgment or from the date of payment of the increased sum. Additionally, the court had to decide whether the interest should be awarded at the prescribed rate or at a lesser rate as argued by the defendant.

The court found that the rejection of the tender of payment did not amount to an accord and satisfaction, as there was no fresh agreement between the parties that would discharge the original debt. The court held that post-judgment interest should accrue from the date of the original judgment until the date of payment of the increased sum. The court further ruled that the interest should be calculated at the prescribed rate, rejecting the defendant's argument for a lesser rate. The court concluded that the interest should run from the date of the original judgment to the date of payment of the increased sum at the prescribed rate.

As a result, the court ordered that post-judgment interest be paid by the defendant to the plaintiff from the date of the original judgment to the date of payment of the increased sum at the prescribed rate, as provided by the Civil Procedure Act 2005.