Hodgson v Amcor Ltd (No 9)

In Hodgson v Amcor Ltd (No 9), the plaintiff sought interest on a judgment sum awarded in their favour under the Penalty Interest Rates Act 1983 (Vic). The court had to determine whether there was good cause to not award interest on the statutory basis, whether the rate of statutory interest was a matter of discretion, the amount on which interest should be awarded, and whether tax payable on the judgment sum should be taken into account. The matter was before the Supreme Court of Victoria.

The legal issues involved interpreting the Penalty Interest Rates Act 1983 (Vic) and Section 58 of the Supreme Court Act 1986 (Vic) in the context of interest on a judgment sum. Specifically, the court had to consider the meaning of "good cause to the contrary" in Section 58, the discretion in setting the rate of statutory interest, and the appropriate sum on which to calculate interest, including whether tax payable on the judgment sum should be deducted.

The court found that "good cause to the contrary" in Section 58 of the Supreme Court Act 1986 (Vic) required a compelling reason to deviate from the statutory interest rate. The rate of statutory interest was not a matter of discretion, but rather fixed by statute. The interest was to be calculated on the full judgment sum, and tax payable on the judgment sum was not to be deducted. The court followed the reasoning in Whitlam v Insurance Australia Group Ltd [2005] NSWSC 200 (Einstein J).

The court awarded interest on the full judgment sum at the statutory rate, as there was no good cause to the contrary, and tax payable on the judgment sum was not to be deducted. The decision clarified the interpretation and application of the Penalty Interest Rates Act 1983 (Vic) and Section 58 of the Supreme Court Act 1986 (Vic) in relation to interest on judgment sums.