| IN THE COURT OF APPEAL OF NEW ZEALAND |
| CA48/2010 [2014] NZCA 435 |
| BETWEEN | DANIEL THOMAS SPENCER RIDDIFORD YVONNE ADA RIDDIFORD |
| AND | THE ATTORNEY-GENERAL |
| Court: | Arnold, Randerson and Stevens JJ |
Counsel: | First Appellant in Person |
Judgment: (On the papers) | 4 September 2014 at 2:30pm |
JUDGMENT OF THE COURT
AThe application to recall the judgment of 28 March 2012 is granted.
BThe respondent must pay interest to the appellant as directed in [5] hereof.
CThe judgment of 28 March 2012 otherwise remains undisturbed.
____________________________________________________________________
REASONS OF THE COURT
By a judgment dated 28 March 2012, we allowed this appeal and quashed a costs award made by the Land Valuation Tribunal against the appellants in the sum of $100,000.[1] We also quashed an award of costs made against the appellants in the High Court. We ordered the respondent to pay the appellants usual disbursements incurred in the appeal to this Court.
The appellants have since applied to recall the judgment, principally to seek interest on the costs award of $100,000 from the date it was made on 18 May 2007. The respondent accepts that payment of simple interest should be made at the rates specified under the Judicature Act 1908 but for a reduced period to reflect the respondent’s submission that the appellants did not pursue their appeal expeditiously. If the judgment is to be recalled, the respondent also seeks a reversal of our order quashing the costs ordered in the High Court.
We regret that there has been substantial delay in delivering our judgment to resolve these issues. In relation to the main issue of interest, we are not willing to accept the appellants’ submission that interest should be awarded on a compound basis at bank rates. In the absence of any specific provision for compound interest and, in the light of the inability to award compound interest under s 87 of the Judicature Act, we are satisfied that the proper award is for simple interest. The submission that the relevant legislation was intended to allow “full compensation” does not cause us to alter our view.
Given that the respondent has had the benefit of the $100,000 costs award (by deducting it from the compensation awarded) for the entire period since the date of the award, we do not consider it is appropriate to reduce the period of the award as the respondent has suggested.
Accordingly, our judgment is recalled solely for the purpose of awarding interest. The respondent must pay the appellants simple interest at Judicature Act rates on the sum of $100,000 from 18 May 2007. The applicable rates are:
From 18 May 2007 to 30 June 2008 7.5 per cent
From 1 July 2008 to 30 June 2011 8.4 per cent
From 1 July 2011 until payment 5 per cent
There are several other issues raised by the appellants which we now…
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- Case
- [2014] NZCA 435
- Decision Date
CaseChat Overview and Summary
The Court of Appeal recalled the judgment of 28 March 2012 to award interest on the costs award. The court held that interest should be awarded on a simple basis at the rates specified under the Judicature Act 1908, and that the period for which interest was payable should not be reduced. The court also held that it was not appropriate to revisit the order quashing the costs awarded in the High Court. The court's reasoning was that there was no specific provision for compound interest, and that the respondent had already benefited from the costs award for the entire period since the date of the award. The court also held that the appellants were not entitled to an award of legal fees or interest on the disbursements ordered.
The Court of Appeal granted the application to recall the judgment of 28 March 2012. The respondent was ordered to pay the appellants simple interest at Judicature Act rates on the sum of $100,000 from 18 May 2007. The applicable rates were 7.5 per cent from 18 May 2007 to 30 June 2008, 8.4 per cent from 1 July 2008 to 30 June 2011, and 5 per cent from 1 July 2011 until payment. The judgment of 28 March 2012 otherwise remained undisturbed.
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