Zhao v Wu (No 2)

The case of Zhao v Wu (No 2) involved a dispute regarding a debt. The matter was heard in the Supreme Court of New South Wales, which was tasked with determining the limitation of actions applicable to a debt that was payable either immediately or on demand. The plaintiff, Zhao, sought to recover a sum of money from the defendant, Wu, who argued that the claim was statute-barred. The central issue before the court was whether the usual rule of construction, which dictates that time runs from the date of the advance for a loan repayable on demand, was displaced by any clear language in the agreement between the parties.

The court had to examine whether the terms of the agreement between Zhao and Wu provided any clear language that would alter the usual rule. The usual rule in such cases is that the time for bringing an action starts from the date of the advance. However, if the terms of the agreement are clear and unambiguous, they may dictate a different starting point for the limitation period. The court also needed to determine whether the magistrate's failure to address the limitation defence necessitated a remitter to the Local Court or if the Supreme Court could determine the proceedings. This involved interpreting the relevant statutory provisions and considering the appropriate course of action given the circumstances.

The Supreme Court concluded that the clear language in the agreement did not displace the usual rule, meaning that time started from the date of the advance. The court also found that the failure of the magistrate to address the limitation defence did not necessitate a remitter to the Local Court, as the Supreme Court could determine the proceedings. Consequently, the court dismissed Wu's limitation defence and allowed Zhao's claim to proceed. The final orders of the court were that Wu was liable to pay the sum claimed by Zhao, plus interest and costs.