Sydney Local Health District v Macquarie International Health Clinic Pty Ltd (No 2)

Sydney Local Health District appealed from orders made by Kunc J in proceedings between the District and Macquarie International Health Clinic Pty Ltd. The dispute concerned the calculation of damages and interest awarded to Macquarie International Health Clinic following earlier findings of liability against Sydney Local Health District.

The primary legal issues before the Court of Appeal were whether Kunc J erred in his assessment of mesne profits for the Car Park Site, additional building and consultancy costs, and damages for remediation and excavation work. The court was also required to determine the correct treatment of a payment made by Sydney Local Health District pursuant to an earlier order.

The Court of Appeal varied the primary judge's orders, finding that the sum awarded for mesne profits was to be increased to $15,806,163.90, which included damages and interest. The court also varied the judgment for additional building and consultancy costs to $795,628.75 and the damages for remediation and excavation work to $301,990 (excluding GST). Crucially, the court ordered that Sydney Local Health District was entitled to the repayment of $138,000, plus interest, which had been paid under a previous order. The court also ordered that each party bear its own costs of the inquiry as to damages and the costs of the Guarantee and Indemnity proceedings and the Land and Environment Court proceedings.