LMI Australasia Pty Ltd v Baulderstone Hornibrook Pty Ltd (No 2)

The case involved a dispute between LMI Australasia Pty Ltd, the plaintiff, and Baulderstone Hornibrook Pty Ltd, the defendant. The plaintiff sought damages for breach of contract, with the primary contention being the calculation of the present value of future income streams that were lost due to the breach. The matter was heard in the Federal Court of Australia.

The central legal issues the court had to address were the appropriate method for calculating the present value of the lost income stream and the allocation of costs between the parties. The court was required to decide on the appropriate discount rate to apply to the future income stream and whether the defendants were entitled to indemnity costs under the circumstances. The court also needed to consider the overall success of the parties, particularly in relation to the apportionment of costs.

The Federal Court found that the plaintiff's approach to calculating the present value of the lost income stream was not appropriate. Instead, the court adopted a different methodology which resulted in a lower amount of damages being awarded to the plaintiff. The court also held that, despite the plaintiff's partial success, the defendants' substantial success in defending the major claims justified an order for costs in favour of the defendants. The court declined to award indemnity costs, noting that the plaintiff's offer to settle via a Calderbank letter did not meet the stringent criteria required for such an award.

The final orders of the court included the determination of the present value of the lost income stream using the adopted methodology, an order for costs in favour of both parties, and a refusal to grant indemnity costs to the defendants.