Machado v Underwood (No 2)

This matter concerned an appeal to the Full Court of the Supreme Court of South Australia by the appellants against a judgment of the Magistrates Court. The appeal related to a defamation action brought by the first respondent against the appellants.

The primary legal issues before the Full Court were the appropriate orders for costs of the appeal, given the appellants' partial success in reducing the damages awarded at trial, and the calculation of pre-judgment and post-judgment interest on the damages awarded to the first respondent. The court also considered the costs of the action at trial and the costs of an application for security for costs of the appeal.

The Full Court, by majority, ordered that the appellants pay 85 per cent of the first respondent’s costs of the appeal on a party and party basis, and that the appellants pay the second respondent’s costs of the appeal on a party and party basis. The court also ordered that there be no order as to the costs of the first respondent’s application for security for the costs of the appeal. Regarding interest, the court ordered pre-judgment interest for the period from the date of publication until the date of the Full Court's judgment, awarding a lump sum of $3,000 in lieu of a precise calculation. Post-judgment interest was to run at the prescribed rate. The appellants were ordered to pay the first respondent’s costs of the action, including the trial, on an indemnity basis.