State of NSW v Delly (No2)

The State of New South Wales (appellant) appealed to the Court of Appeal of New South Wales against a decision of Balla J concerning damages awarded to Mr Delly (respondent). The appeal concerned the calculation of interest on damages and the appropriate basis for awarding costs, particularly in light of offers of compromise made by the appellant.

The primary legal issues before the Court of Appeal were whether the trial judge erred in her calculation of interest on the damages awarded to the respondent, and whether the court should depart from the usual order for costs, awarding indemnity costs in favour of the appellant for certain periods of the litigation. This involved considering the effect of multiple offers of compromise made by the appellant before and during the trial.

The Court of Appeal varied the original judgment by adjusting the date from which interest was to be calculated and increasing the amount of damages awarded. The court also set aside the original costs order and made a new order that the appellant pay the respondent's costs of the trial on an ordinary basis up to a specified date, and thereafter on an indemnity basis. The court further varied its own previous costs order relating to the appeal, specifying that costs would be on an ordinary basis up to a certain date and on an indemnity basis thereafter.