Thomas v SMP (International) No 6 [2010] NSWSC 1311

Thomas v SMP (International) No 6 [2010] NSWSC 1311

Compound interest with yearly rests and a rate 4% above the Reserve Bank of Australia cash rate is the most appropriate compensation for losses suffered by the plaintiffs due to the fourth defendant's serious breach of fiduciary duty, according to equitable principles and the guidance of Practice Note SC Gen 16.

Jurisdiction
Australia
Judgment Date
16 November 2010
Procedural Posture
Civil (equity Division) / Post Judgment Determination of Pre Judgment Interest
Outcome
Compound pre-judgment interest ordered for plaintiffs at yearly rests at rates 4% above Reserve Bank of Australia cash rate.
Legal Topics
['compound Interest' 'pre Judgment Interest' 'breach of Fiduciary Duty' 'compensation' 'practice Note SC Gen 16']
['equity'] ['compound Interest' 'pre Judgment Interest' 'breach of Fiduciary Duty' 'compensation' 'practice Note SC Gen 16']

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Procedural Posture

Civil (equity Division) / Post Judgment Determination of Pre Judgment Interest

Legal Issues

  1. 1 ['Appropriate award of pre-judgment interest (compound or simple)' 'Applicable rate and rests for interest' "Court's equitable jurisdiction to award compound interest in breach of fiduciary duty"]

Ratio Decidendi

Compound interest with yearly rests and a rate 4% above the Reserve Bank of Australia cash rate is the most appropriate compensation for losses suffered by the plaintiffs due to the fourth defendant's serious breach of fiduciary duty, according to equitable principles and the guidance of Practice Note SC Gen 16.

Court Disposition

Compound pre-judgment interest ordered for plaintiffs at yearly rests at rates 4% above Reserve Bank of Australia cash rate.

Orders

  • ['Fourth defendant (Mr Willett) to pay compound interest on sums owed to plaintiffs, calculated at yearly rests at rates per Practice Note SC Gen 16.' 'Awarded amounts: $3,326,588 to Mr Thomas plus $4,382,291 compound interest; $214,373 to Mr Sullivan plus $471,972 compound interest.']