Hoban v Mathieson [No 2]

In *Hoban v Mathieson [No 2]*, the New South Wales Court of Appeal considered an application for interest and costs following an earlier judgment. The dispute concerned the entitlement to interest on a sum of money awarded to the plaintiff, Mr. Hoban, in a previous proceeding against the defendant, Mr. Mathieson.

The primary legal issue before the Court of Appeal was whether the plaintiff was entitled to an award of interest on the judgment sum from the date of the breach of contract, or from the date of the commencement of proceedings. The court also had to determine the appropriate order for costs of the appeal.

Handley JA, applying the principles established in *Suncorp Insurance Ltd v Shannahan* and *O'Brien v McKean*, held that interest should be awarded from the date of the breach of contract, as this was the date the plaintiff was deprived of the use of the money. His Honour reasoned that the purpose of awarding interest was to compensate the plaintiff for the loss of use of the money, and that this loss commenced at the earliest possible moment. The court also ordered that the costs of the appeal follow the event, meaning the unsuccessful party would bear the costs.