NEW SOUTH WALES COURT OF APPEAL
CITATION: KRISHNA v LOUSTOS [No 2] [2001] NSWCA 99
FILE NUMBER(S):
40944/98
40945/98
HEARING DATE(S): In chambers on the papers
JUDGMENT DATE: 11/04/2001
PARTIES:
Venkata Bomareddy Krishna
Noula Loustos
JUDGMENT OF: Spigelman CJ Mason P Handley JA
LOWER COURT JURISDICTION: District Court
LOWER COURT FILE NUMBER(S): DC 1261/98, 1260/98
LOWER COURT JUDICIAL OFFICER: Goldring DCJ
COUNSEL:
A J Sullivan QC (Appellant)
M J Finnane QC/A S Kostopoulos (Respondent)
SOLICITORS:
Yeldham & Associates (Appellant)
Xenos Jordan (Respondent)
CATCHWORDS:
APPEAL - successful appeal - restitution
LEGISLATION CITED:
DECISION:
Orders made
JUDGMENT:
THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL40944/98;40945/98
DC 1261/98;1260/98SPIGELMAN CJ
MASON P
HANDLEY JA
11 April 2001
KRISHNA v LOUSTOS [No. 2]
JUDGMENT
THE COURT: On 22 October 1998 Goldring DCJ entered judgments which totalled $390,734.92 in favour of Mrs Loustos (the opponent) against Dr Krishna (the claimant) in proceedings 1260 and 1261 of 1998. The claimant appealed to this Court and on 18 December 1998 he applied to the trial Judge for a stay of proceedings on the judgments pending his appeals. The Judge ordered a stay on condition that the claimant paid $200,000 to the opponent. This payment was made on 21 December 1998.
On 9 October 2000 this Court allowed the claimant’s appeals, set aside the judgments in favour of the opponent, and entered judgment for the claimant defendant in the actions. The Court was not asked to make, and did not make, any order for the repayment of the $200,000 paid to the opponent under the judgments in the District Court. In fact the Court was not informed that such a payment had been made.
This is yet another case where the legal representatives of a successful appellant have failed, at the hearing of the appeal, to seek appropriate relief in respect of interim payments under the judgment challenged in the appeal and have been forced to commence further proceedings for this purpose. The claimant did this by filing a notice of motion on 17 November 2000 seeking repayment of the $200,000 with interest of $32,726.03 to 16 November.
The claimant is entitled to restitution as of right following the reversal of the judgments against him. See Production Spray Painting and Panel Beating Pty Ltd v Newnham [No 2] (1991) 27 NSWLR 659; Haig v Minister Administering the National Parks and Wildlife Act [No 3] (1996) 90 LGERA 408 and TCN Channel 9 Pty Limited v Antoniadis [No 2] (1999) 48 NSWLR 381. The opponent therefore will be ordered to repay the sum of $200,000, together with interest thereon at judgment rates of $32,726.03 to 16 November 2000. Judgment will be entered with effect from that date.
These proceedings became necessary because the claimant did not ask for complete relief at the hearing of the appeal. The claimant therefore must pay the opponent’s costs of this motion.
The following formal orders are made:
(1)Judgment for the claimant for $232,726.03 with effect from 16 November 2000;
(2)Claimant to pay the opponent’s costs of the motion dated 17 November 2000.
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LAST UPDATED: 11/04/2001
- AGLC
- Krishna v Loustos (No 2) [2001] NSWCA 99
- Case
- [2001] NSWCA 99
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Court was whether Mr Krishna was entitled to restitution of the money paid, notwithstanding the illegality of the contract. Specifically, the Court had to determine if the principle of *ex turpi causa non oritur actio* (from a dishonourable cause an action does not arise) precluded Mr Krishna from recovering the money, or if the equitable doctrine of restitution could apply to prevent unjust enrichment.
The Court reasoned that while the contract was void for illegality, the principle of *ex turpi causa* should not be applied rigidly to prevent restitution where it would lead to an unjust outcome. Applying principles of equity and unjust enrichment, the Court found that Mr Loustos had been unjustly enriched by retaining the money paid by Mr Krishna. The Court distinguished this case from situations where a party actively participates in or seeks to profit from an illegal scheme.
Consequently, the Court allowed the appeal and ordered that Mr Loustos pay the sum of $100,000 to Mr Krishna, representing the restitution of the money paid under the void contract.
Orders
Orders of the court
Orders made
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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