MBP (SA) Pty Ltd v Gogic [1991] HCA 3

MBP (SA) Pty Ltd v Gogic [1991] HCA 3

Because damages for pre-trial non-economic loss are assessed at the value of money at the date of award, commercial interest rates would compensate the plaintiff for an inflation-related loss not actually sustained. The proper function of interest is compensation for being kept out of money, not provision of an investment return. The award of interest for pre-trial pain and suffering at commercial rates was erroneous, and Cullen v. Trappell was not to be followed on that point.

Jurisdiction
Australia
Procedural Posture
Personal Injuries Damages Action; Application for Special Leave to Appeal / High Court Application for Special Leave to Appeal and Appeal From the Supreme Court of South Australia Judgment; Related Application for Special Leave to Appeal From the Full Court
Outcome
Application for special leave to appeal from the Full Court refused. Application for special leave to appeal from Cox J. granted. Appeal allowed. Judgment varied by deleting the award of interest for pre-trial non-economic loss and matter remitted for reassessment.
Legal Topics
['interest on Damages' 'pre Trial Non Economic Loss' 'pain and Suffering' 'commercial Interest Rates' 'special Leave to Appeal']
['tort Law' 'personal Injury Damages' 'civil Procedure'] ['interest on Damages' 'pre Trial Non Economic Loss' 'pain and Suffering' 'commercial Interest Rates' 'special Leave to Appeal']

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Procedural Posture

Personal Injuries Damages Action; Application for Special Leave to Appeal / High Court Application for Special Leave to Appeal and Appeal From the Supreme Court of South Australia Judgment; Related Application for Special Leave to Appeal From the Full Court

Legal Issues

  1. 1 ['Whether interest on damages for pre-trial pain and suffering should be awarded at commercial rates of interest.' 'Whether Cullen v. Trappell should continue to be treated as authoritative on interest for pre-trial non-economic loss.' 'Whether the matter should be remitted for reassessment of interest for pre-trial non-economic loss.']

Ratio Decidendi

Because damages for pre-trial non-economic loss are assessed at the value of money at the date of award, commercial interest rates would compensate the plaintiff for an inflation-related loss not actually sustained. The proper function of interest is compensation for being kept out of money, not provision of an investment return. The award of interest for pre-trial pain and suffering at commercial rates was erroneous, and Cullen v. Trappell was not to be followed on that point.

Court Disposition

Application for special leave to appeal from the Full Court refused. Application for special leave to appeal from Cox J. granted. Appeal allowed. Judgment varied by deleting the award of interest for pre-trial non-economic loss and matter remitted for reassessment.

Orders

  • ['Application for special leave to appeal from Full Court refused.' "Applicant to pay the respondent's costs of the application for special leave to appeal from Full Court." 'Application for special leave to appeal from Cox J. granted.' 'Appeal allowed.' 'Vary the judgment of the Supreme Court of South Australia by...