Tulloch Brae Pty Ltd v Environmental Protection Equipment Pty Ltd (No 2)

Tulloch Brae Pty Ltd was involved in a legal dispute with Environmental Protection Equipment Pty Ltd (EPEQ), concerning a counterclaim made by the latter. The case was heard in the Supreme Court of Victoria. EPEQ's counterclaim was for the return of a $50,000 deposit that Tulloch Brae had provided as a deposit for the supply of equipment. The counterclaim also included a claim for interest on the deposit since the equipment was never supplied. The court needed to decide whether the deposit was refundable and, if so, whether interest was applicable on the amount.

The court held that the deposit was refundable because the equipment was not supplied, and the terms of the agreement did not explicitly state that the deposit would be non-refundable. The court further found that the interest claim was valid, as it was based on the terms of the agreement, which provided for interest to be paid on any amount due. The court awarded interest from the date the deposit was paid until the date of judgment.

Tulloch Brae was ordered to pay the defendant's costs of the claim and the counterclaim, as well as interest on the deposit. The defendant, in turn, was ordered to pay the costs incurred by Mr Sargood, who was not a party to the agreement but was involved in the counterclaim. The final judgment awarded the defendant $165,098.71 in interest on the deposit, bringing the total amount owed to the defendant to $215,098.71.