Kabic v AAI Limited t/as GIO (No 2)

The case of *Kabic v AAI Limited t/as GIO (No 2)* concerned an appeal before the Court of Appeal of New South Wales. The dispute revolved around the date from which post-judgment interest should accrue, particularly following a successful appeal that resulted in a substituted judgment. The appellant, Mr. Kabic, sought to have interest run from the date of the original first instance orders, while the respondent, AAI Limited (trading as GIO), contended that interest should only commence from the date of the appellate court's orders.

The primary legal issue before the Court of Appeal was whether, upon a successful appeal that substituted the original judgment, post-judgment interest should be calculated from the date of the initial judgment at first instance or from the date of the appellate court's orders. This question was central to determining the quantum of interest payable by the respondent to the appellant.

The Court of Appeal determined that where an appellate court substitutes a judgment for that of the court below, the substituted judgment should be treated as if it were the judgment of the appellate court from the date of its orders. However, the court also considered the specific circumstances of the case, including the operation of section 151Z of the *Workers Compensation Act 1987* (NSW). The court ordered that the original order entered on 16 March 2018 be set aside and replaced with a judgment for the appellant against the respondent in the sum of $986,464.91. Crucially, the court ordered that this substituted judgment was to take effect as from 16 March 2018. Further orders addressed a judgment for a second cross-respondent and the allocation of payments to satisfy various obligations, including the appellant's judgment against the respondent/cross-appellant.