LCM Operations Pty Ltd v Rabah Enterprises Pty Ltd (No 2)

LCM Operations Pty Ltd, the plaintiff, sued Rabah Enterprises Pty Ltd, the defendant, in the Supreme Court of Queensland. The plaintiff claimed interest on a debt arising from a contract for services. The dispute centred on the point in time from which interest should be calculated according to section 100 of the Civil Procedure Act 2005. The plaintiff argued that interest should run from the date of performance of the services, while the defendant contended that interest should only commence from the date of a demand for payment.

The legal issues before the court were whether the cause of action for debt accrued upon the performance of the services, and if a demand for payment was necessary for the cause of action to arise. The court examined the terms of the contract and found no agreement stipulating that the cause of action would only accrue upon a demand for payment. Given that there was no such agreement, the court needed to determine if making a demand was a prerequisite for the cause of action in debt to accrue. The court concluded that making a demand was not necessary for the cause of action in debt to arise, and thus, the cause of action accrued upon the performance of the services.

The court held that the plaintiff was entitled to interest from the date of performance of the services. As there was no agreement specifying when the cause of action would accrue, the default position under the Civil Procedure Act 2005 applied, where interest is calculated from the date of performance. The court's decision was based on the absence of any agreement to the contrary and the legislative framework governing interest on debts. Therefore, the plaintiff was entitled to interest from the date the services were performed.