Leda Pty Ltd v Weerden (No 2)

In *Leda Pty Ltd v Weerden (No 2)*, the New South Wales Court of Appeal considered an application for costs and interest on costs following an appeal. The dispute concerned the assessment of costs and the calculation of interest on those costs, particularly in circumstances where an offer of compromise had been made and rejected.

The primary legal issues before the Court were whether the costs of the appeal should be awarded on an indemnity basis, and how interest should be calculated on the awarded costs, especially when only a portion of the total costs incurred were ultimately allowed. The Court also had to determine the extent to which an indemnity costs order for the appeal should encompass the period prior to a relevant offer of compromise being made.

The Court ordered that the costs of the appeal be assessed on an indemnity basis. In relation to interest on costs, the Court established a formula to calculate the interest payable. This formula involved determining the "Allowed Percentage" of costs, calculated as the ratio of allowed costs to total incurred costs, expressed as a percentage. The appellant was ordered to pay interest on the allowed percentage of each amount actually paid for costs and disbursements, from the date of payment until the costs were fully paid or a further order was made. Liberty to apply was reserved for further orders concerning interest.