Westpac Banking Corporation v “Stone Gemini”

The case between Westpac Banking Corporation and “Stone Gemini” was heard in an Australian court. The dispute primarily revolved around the calculation of interest payable on a judgment sum in US dollars. Westpac claimed that it was entitled to interest on the judgment amount at US dollar rates from the relevant date until the date of judgment, while “Stone Gemini” argued for a different approach to the calculation of interest.

The court was required to determine the appropriate measure of compensation for Westpac, considering the amount it was out of pocket due to the judgment in US dollars. Additionally, the court had to decide the applicable rate of interest that would compensate Westpac for the interest it would have had to pay to borrow the judgment amount at the relevant date, including any costs and expenses associated with such borrowing.

The court concluded that Westpac was entitled to simple interest on the judgment amount at US dollar rates, from the relevant date, after accounting for any double counting, until the date of judgment. The applicable rate would be the one that compensates Westpac for the interest it would have had to pay to borrow the amount of the judgment at the relevant date, along with any associated costs and expenses. Consequently, the matter was stood over to allow the parties to recalculate the appropriate interest amount in US dollars and to finalise the case.

The final orders of the court would be based on the recalculated interest amount in US dollars, taking into account the court's determination of the proper measure of compensation and the applicable interest rate.