Meriton Apartments Pty Limited v The Owners of Strata Plan No. 72381 (No. 3)

Meriton Apartments Pty Limited brought an action against the Owners of Strata Plan No. 72381, seeking damages for loss of profits due to the defendants' repudiation of an agreement to provide caretaker services. The case was ultimately decided by the Supreme Court of New South Wales, having been transferred from the Local Court. The primary legal issue was the calculation of interest on the loss of profits awarded. The court had to decide whether interest should be calculated from the end of the unexpired portion of the repudiated agreement or on the basis that a loss of profits was suffered monthly from the date of repudiation. Another issue before the court was the allocation of costs given that both parties had experienced partial success and failure in their respective claims.

The court examined the statutory provisions under the Civil Procedure Act 2005, particularly section 100, which governs the assessment of interest in judgments. The court concluded that interest on the loss of profits should be calculated from the end of the unexpired portion of the repudiated agreement, not on a monthly basis from the date of repudiation. This interpretation was consistent with the statutory provisions and the underlying principles of equity. Regarding costs, the court noted that both parties had some success and failure in their claims and cross-claims. The court considered the overall conduct of the proceedings and the necessity of transferring the case from the Local Court to the Supreme Court. The court determined that the costs order should reflect the partial success of both parties and the procedural history of the case.

The Supreme Court ordered that interest on the loss of profits should be calculated from the end of the unexpired portion of the repudiated agreement. Additionally, the court ordered that costs should be awarded to the plaintiff to a certain extent, reflecting the partial success of the plaintiff’s claim against the defendant/cross-claimant. The court also noted that the proceedings could have been conducted in the District Court, but the transfer to the Supreme Court was appropriate given the circumstances. This decision provided clarity on the assessment of interest in damages for loss of profits and the allocation of costs in complex litigation involving strata disputes.