Screenco Pty Ltd v R L Dew Pty Ltd - [2002] NSWSC 1050

CITATION: Screenco Pty Ltd v R L Dew Pty Ltd & Ors [2002] NSWSC 1050

CURRENT JURISDICTION: Equity Division
Commercial List

FILE NUMBER(S): SC 50067/99

HEARING DATE(S): 3 October 2002

JUDGMENT DATE: 11 November 2002

PARTIES :

Screenco Pty Ltd (Pltf)
R L Dew Pty Ltd (1D)
Ronald Steele t/as Dragon Scaffolding (2D)
Highrise Group Pty Ltd (XD)

JUDGMENT OF: McClellan J

COUNSEL : C R C Newlinds (Pltf)
J B Turnbull (1D)
G J McVay (2D)
G A Sirtes (XD)

SOLICITORS: Michell Sillar (Pltf)
McCabe Terrill Lawyers (1D)
Colin Biggers Paisley (2D)
Henry Davis York (XD)

CATCHWORDS: COMMERCIAL - INTEREST - where damage has been proved but plaintiff not had to pay for a replacement item - general principles of the discretion to award interest - whether it is just to award interest in the circumstances - COSTS - offer of compromise where claim is later amended - order for costs as between 1D and 2D.

LEGISLATION CITED: Supreme Court Act s 94
Supreme Court Rules Pt 22 r 9, r 1A(2)(b), Pt 52A r 22

CASES CITED: Ruby v Marsh (1975) 132 CLR 643
BP Exploration Co (Libya) Ltd v Hunt (No 2) (1979) 1 WLR 783
General Tire & Rubber Co v Firestone Tyre & Rubber Co Ltd (1975) 1 WLR 819
SCI Operations Pty Ltd & ACI Operations Pty Ltd v Commonwealth of Australia (1996) 69 FCR 346
John Fairfax & Sons Ltd v Kelly (1987) 8 NSWLR 131
Batchelor v Burke (1981) 148 CLR 448
Settree v Roberts [1982] 1 NSWLR 649
Fire and All Risks Insurance Co Ltd v Callinan (1978) 140 CLR
Thompson v Faraonio (1979) 54 ALJR 231
Pheeney v Doolan [No 2] [1977] NSWLR 601
Grincelis v House (2000) 201 CLR 321
Johnson v Perez (1988) 166 CLR 351
Calderbank v Calderbank (1975) 3 All ER 333

DECISION: Para 33

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
COMMERCIAL LIST

McCLELLAN J

MONDAY, 11 NOVEMBER 2002

50067/99 SCREENCO PTY LIMITED v R L DEW PTY LIMITED & ANOR

JUDGMENT: (interest and costs)

1 HIS HONOUR: I have published my reasons in relation to this matter. It is now necessary to determine matters of interest and costs.

Interest

2 The parties agreed the appropriate money sum for all items of damage except for the Jumbotron screen. The parties, for reasons recorded in the main reasons for judgment, agreed that the loss should initially be determined in pounds sterling at the date of the accident in March 1998. I determined that item in the sum of £477,984. The parties have further agreed that the appropriate rate at which to convert that sum to Australian dollars is the exchange rate at 3 March 1998 with the consequence that the appropriate sum for the screen is $1,152,897.40.

3 The plaintiff claims interest on the various items of damage from the date upon which either the damage occurred or the costs reflected in that item were incurred. Interest is claimed on the following basis:

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2002] NSWSC 1050
Decision Date: 11 November 2002

CaseChat Overview and Summary

In the case of Screenco Pty Ltd v R L Dew Pty Ltd, the plaintiff, Screenco, sought interest on damages awarded for the loss of a property due to fire. The defendant, R L Dew, was found liable for the damage caused by a defective electrical installation. The case was heard in the Supreme Court of New South Wales. The primary issue before the court was whether it was just to award interest on the damages awarded to Screenco, given that they had not yet paid for a replacement property. Additionally, the court needed to determine the appropriate costs order, considering an offer of compromise made by Screenco.

The court examined the general principles governing the discretion to award interest on damages. It noted that interest may be awarded if it is just to do so, taking into account the circumstances of the case. The court considered whether Screenco had incurred any financial burden as a result of the delay in replacing the property, and whether it was fair to allow the defendant to benefit from the investment of the damages during this period. The court held that it was not just to award interest in these circumstances, as Screenco had not yet paid for a replacement property and had not suffered a financial disadvantage due to the delay. Regarding the costs order, the court found that Screenco's offer of compromise, which was later amended, did not constitute a valid offer under the relevant rules, and ordered costs as between first and second defendants.

The court's decision highlights the importance of considering the specific circumstances of each case when exercising discretion to award interest on damages. The court's reasoning in this case may serve as a guide for future cases involving similar issues. The final orders of the court were that interest would not be awarded on the damages, and costs were to be paid as between the first and second defendants.

Orders