Phoenix Eagle Company Pty Ltd v Ardrey [No 3]

Phoenix Eagle Company Pty Ltd (the plaintiff) sought damages against Dr Ardrey (the defendant) in the Supreme Court of Western Australia. The plaintiff alleged breaches of fiduciary duty and fraud by the defendant, who was a director of the plaintiff company. The parties had previously entered into a consent judgment that established the defendant's misconduct. The case before the court was to assess the damages owed to the plaintiff for the losses resulting from the defendant's misconduct. The court had to determine the appropriate form of damages, including whether compound interest should be awarded as part of the equitable compensation. The court also had to decide the rate of interest and the calculation method for the interest on damages.

The court examined the nature of the losses incurred by the plaintiff, the appropriateness of awarding compound interest as part of the equitable compensation, and the method of calculating such interest. The court considered the precedents and principles governing the award of compound interest in cases of equitable compensation. The court concluded that, given the nature of the losses and the defendant's misconduct, awarding compound interest was appropriate. The court also determined that the interest should be calculated at a rate of 18% per annum with monthly rests, based on the evidence and submissions presented. The court held that the plaintiff's claims for damages should be allowed, and that the defendant should pay compound interest as part of the equitable compensation.

The court ordered that the plaintiff would be awarded compound interest at 18% per annum with monthly rests on the amounts identified as established losses. The plaintiff was required to submit a minute of orders, including the compound interest calculations, within 14 days. The court also reiterated that the plaintiff should be awarded its costs of the assessment of damages hearing on an indemnity basis. The final orders should reflect the appropriate special costs order for the assessment of damages exercise.