WFM Motors Pty Limited v Bar M Pty Limited (No 2)

WFM Motors Pty Limited sued Bar M Pty Limited for the recovery of damages, interest and costs. WFM Motors alleged that Bar M Pty Limited had breached a contract. The matter was heard in the Federal Circuit Court. The central legal issue was the rate of interest that should apply to the sums claimed by WFM Motors, particularly in light of Bar M Pty Limited's early acknowledgement of the claim shortly after the proceedings commenced, but before judgment was entered in accordance with UCPR Pt 20 r 20.34(3). The court was also required to clarify the meaning of an ambiguous term in the contract.

The court held that an appropriate rate of interest was 8.25 per cent per annum, as per the terms of the contract between the parties. The court found that there was no provision in the contract that required the interest rate to be reduced if Bar M Pty Limited acknowledged the claim early. The court also clarified that the term "motor vehicle" in the contract did not include any part of a vehicle that was not attached to the body of the vehicle. This interpretation was consistent with the ordinary meaning of the term and the purpose of the contract.

The court ordered that WFM Motors was entitled to recover damages, interest at the rate of 8.25 per cent per annum and costs. The court also ordered that the meaning of the term "motor vehicle" in the contract be clarified as not including any part of a vehicle that was not attached to the body of the vehicle.