Hungerfords (Registered Firm) & Ors v Walker

The applicants, Hungerfords (a registered firm) and its associated firms, sought special leave to appeal to the High Court of Australia against a decision of the Full Court. The dispute concerned the award of interest as part of damages for breach of contract or tort, specifically the recovery of compound interest for the loss of use of money. The respondents were Peter Victor Walker and others, trading as "Radio Electrix".

The primary legal issue before the High Court was the circumstances under which a court has the power to award interest for the loss of use of money as a component of damages for breach of contract or tort, independent of statutory provisions. The applicants contended that the law in Australia on this matter remained unsettled, despite the Full Court's decision to allow compound interest at a high rate to compensate the respondents for their loss.

The applicants argued that, as a general rule, interest is not recoverable for the late payment of money or as damages for breach of contract or tort, citing a long line of authority including the *London Chatham & Dover Railway* case. They highlighted that while South Australia has statutory provisions for interest on judgments, these typically run from the date of proceedings, with a discretion to allow an earlier date, and do not necessarily address the recovery of interest as part of the substantive damages themselves. The applicants submitted that the Full Court's variation of the trial judge's award, by allowing compound interest, was contrary to established principles.