EMCL Pty Ltd & Anor v Esanda Finance Corporation Ltd (No 2) [1998] FCA 1726

EMCL Pty Ltd & Anor v Esanda Finance Corporation Ltd (No 2) [1998] FCA 1726

The appropriate pre-judgment interest rate was the relevant Supreme Court rate because applying the same rate as would apply in litigation in the State where the Federal Court is sitting has practical value and avoids undesirable State-by-State distinctions. Costs up to and including the principal judgment were reduced to two-thirds in favour of Esanda because EMCL commenced and dominated the litigation with a failed construction claim, although the litigation had been provoked to some extent by Esanda; after judgment each party was to bear its own costs.

Jurisdiction
Australia
Judgment Date
18 December 1998
Procedural Posture
Practice and Procedure / Determination of Pre Judgment Interest Rate, Costs and Final Orders After Principal Judgment
Outcome
Judgment was entered for the first applicant in the amount of $90,529.83, declarations and permanent restraints were made in favour of the respondent concerning the residual value of the vehicle leases, a prior order was set aside, the applicants were ordered to pay two thirds of the respondent's costs up to and...
Legal Topics
['interest on Judgment' 'pre Judgment Interest Under S 51 a of the Federal Court of Australia Act 1976 (cth)' 'costs' 'declarations and Injunctions']
['practice and Procedure' 'civil Procedure'] ['interest on Judgment' 'pre Judgment Interest Under S 51 a of the Federal Court of Australia Act 1976 (cth)' 'costs' 'declarations and Injunctions']

Case Brief

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Procedural Posture

Practice and Procedure / Determination of Pre Judgment Interest Rate, Costs and Final Orders After Principal Judgment

Legal Issues

  1. 1 ['What rate of interest should be applied prior to judgment under s 51A of the Federal Court of Australia Act 1976 (Cth).' 'Whether the Federal Court should apply the interest rates specified for the Supreme Court of the State in which the case is being heard.' 'What costs orders should be made for the trial, judgment and post-judgment period.']

Ratio Decidendi

The appropriate pre-judgment interest rate was the relevant Supreme Court rate because applying the same rate as would apply in litigation in the State where the Federal Court is sitting has practical value and avoids undesirable State-by-State distinctions. Costs up to and including the principal judgment were reduced to two-thirds in favour of Esanda because EMCL commenced and dominated the litigation with a failed construction claim, although the litigation had been provoked to some extent by Esanda; after judgment each party was to bear its own costs.

Court Disposition

Judgment was entered for the first applicant in the amount of $90,529.83, declarations and permanent restraints were made in favour of the respondent concerning the residual value of the vehicle leases, a prior order was set aside, the applicants were ordered to pay two thirds of the respondent's costs up to and...

Orders

  • ['There be judgment for the first applicant against the respondent for $90,529.83.' 'The Court declares that the respondent is entitled to receive and retain for itself the residual value in respect of the leases of the 2749 vehicles referred to in paragraph 5 of the further amended statement of claim.' 'The...