BestCare Foods v Origin Energy [2012] NSWSC 670

BestCare Foods v Origin Energy [2012] NSWSC 670

The assessed damages were for loss of the opportunity to earn profits, valued at the date of the wrong, not for accrued earnings year by year; interest should therefore run from the assessment date on the whole sum. The defendants had not timely raised any alternative interest-rate case or provided competing calculations, so the Court applied the Practice Note SC Gen 16 rates and adopted the plaintiffs' calculation. The plaintiffs were entitled to costs and interest on paid costs notwithstanding QBE's payment of those costs, because subrogation gave the insurer the benefit of the insureds' rights, and the Lahood formula was the appropriate practical method for calculating interest on costs.

Jurisdiction
Australia
Judgment Date
15 June 2012
Procedural Posture
Equity Division Commercial List; Procedural and Other Rulings / After Judgment on 31 May 2012, the Matter Was Stood Over for Orders; Ruling on Disputed Orders as to Interest and Costs
Outcome
Judgment for plaintiff with costs.
Legal Topics
['pre Judgment Interest on Damages' 'interest on Costs' 'costs Following the Event' 'subrogation' 'loss of Opportunity']
['damages' 'civil Procedure' 'costs' 'insurance'] ['pre Judgment Interest on Damages' 'interest on Costs' 'costs Following the Event' 'subrogation' 'loss of Opportunity']

Case Brief

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Procedural Posture

Equity Division Commercial List; Procedural and Other Rulings / After Judgment on 31 May 2012, the Matter Was Stood Over for Orders; Ruling on Disputed Orders as to Interest and Costs

Legal Issues

  1. 1 ['Whether interest on damages for loss of opportunity should run from the date at which the loss was assessed.' 'Whether the Court should apply the default pre-judgment interest rates referred to in Practice Note SC Gen 16 or permit the defendants to adduce evidence of different market rates.' "Whether the Court should adopt the plaintiffs' calculation of interest on damages." 'Whether insured plaintiffs whose insurer paid the costs under subrogation should receive a costs order.' 'Whether interest on paid costs should be allowed and, if so, whether it should be calculated using the Lahood formula.']

Ratio Decidendi

The assessed damages were for loss of the opportunity to earn profits, valued at the date of the wrong, not for accrued earnings year by year; interest should therefore run from the assessment date on the whole sum. The defendants had not timely raised any alternative interest-rate case or provided competing calculations, so the Court applied the Practice Note SC Gen 16 rates and adopted the plaintiffs' calculation. The plaintiffs were entitled to costs and interest on paid costs notwithstanding QBE's payment of those costs, because subrogation gave the insurer the benefit of the insureds' rights, and the Lahood formula was the appropriate practical method for calculating interest on costs.

Court Disposition

Judgment for plaintiff with costs.

Orders

  • ['Interest on damages allowed from the date to which the loss was discounted back for assessment.' 'Pre-judgment interest calculated at the applicable default rates referred to in Practice Note SC Gen 16.' "The plaintiffs' calculation of interest on damages was adopted." 'The plaintiffs are entitled to their costs.'...