Najdovski v Crnojlovic (No 2)

The appeal concerned the entitlement of the plaintiff, Mr Najdovski, to pre-judgment interest on damages awarded in a motor accident claim, and the court's power to award post-judgment interest. The primary dispute revolved around the interplay between section 100 of the *Civil Procedure Act 2005* (NSW) and section 137 of the *Motor Accidents Compensation Act 1999* (NSW), and whether the latter statute limited or replaced the plaintiff's general entitlement to pre-judgment interest. The court also considered whether the plaintiff's offer to settle was unreasonable, impacting the award of interest, and whether post-judgment interest should be awarded on an increased judgment amount arising from the appeal.

The legal issues before the court were: firstly, whether section 137 of the *Motor Accidents Compensation Act 1999* (NSW) operated to limit or extinguish the plaintiff's entitlement to pre-judgment interest under section 100 of the *Civil Procedure Act 2005* (NSW) in the context of a motor accident claim; secondly, whether the plaintiff's offer to settle was unreasonable, thereby affecting the award of pre-judgment interest, by considering the extent of the plaintiff's injuries, expert evidence, and the possibility of contributory negligence; and thirdly, whether post-judgment interest should be awarded on the increased amount of the judgment due to the appeal.

The court reasoned that section 137 of the *Motor Accidents Compensation Act 1999* (NSW) was intended to provide a specific regime for pre-judgment interest in motor accident cases, distinct from the general provisions of the *Civil Procedure Act 2005* (NSW). It held that the language of section 137(4) indicated a discretion to award interest, but this discretion was constrained by the reasonableness of the offer made by the defendant. The court found that the offer made by the defendant was not unreasonable, as it had taken into account the expert evidence regarding the plaintiff's injuries and the potential for contributory negligence. Consequently, the court determined that the plaintiff was entitled to pre-judgment interest, but the amount was to be calculated in accordance with the provisions of section 137 of the *Motor Accidents Compensation Act 1999* (NSW). The court also ordered that post-judgment interest was to be awarded on the outstanding amount of the judgment.