Liberty Grove (Concord) Pty Ltd v Mirvac Projects Pty Ltd [2008] NSWSC 216

Liberty Grove (Concord) Pty Ltd v Mirvac Projects Pty Ltd [2008] NSWSC 216

Liberty is entitled to interest on the entire profit share ($4,325,671) from 4 November 2005, the date by which payment was first demanded and the contract breached, until dates of payment; partial payment received is treated alike for the interest calculation. Although Liberty successfully established its entitlement to a profit share, some claimed elements failed; accordingly, 70% of Liberty's costs of proceedings are awarded. Interest on costs is appropriate to compensate Liberty for having been out-of-pocket during litigation.

Parties
Plaintiff: Liberty Grove (Concord) Pty Ltd; Defendant: Mirvac Projects Pty Ltd
Jurisdiction
Australia
Judgment Date
12 March 2008
Procedural Posture
Commercial Dispute / Consequential Orders Following Reserved Judgment
Outcome
Consequential orders made to give effect to reasons; Liberty awarded principal sum plus pre-judgment interest and 70% of costs; interest on costs to be paid; parties to bring in short minutes of order.
Legal Topics
Pre Judgment Interest, Costs, Interest on Costs
Commercial Law Pre Judgment Interest Costs Interest on Costs

Case Brief

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Parties

Liberty Grove (Concord) Pty Ltd

Plaintiff

Mirvac Projects Pty Ltd

Defendant

Procedural Posture

Commercial Dispute / Consequential Orders Following Reserved Judgment

Legal Issues

  1. 1 What is the appropriate start date for pre-judgment interest on Liberty's profit share?
  2. 2 Is Liberty entitled to pre-judgment interest on the sum already paid ($2,168,837)?
  3. 3 Should Mirvac pay the entirety of Liberty's costs or should a differential costs order be made?

Ratio Decidendi

Liberty is entitled to interest on the entire profit share ($4,325,671) from 4 November 2005, the date by which payment was first demanded and the contract breached, until dates of payment; partial payment received is treated alike for the interest calculation. Although Liberty successfully established its entitlement to a profit share, some claimed elements failed; accordingly, 70% of Liberty's costs of proceedings are awarded. Interest on costs is appropriate to compensate Liberty for having been out-of-pocket during litigation.

Court Disposition

Consequential orders made to give effect to reasons; Liberty awarded principal sum plus pre-judgment interest and 70% of costs; interest on costs to be paid; parties to bring in short minutes of order.

Orders

  • Liberty entitled to $4,325,671 as its profit share under the Agreement.
  • Of this, $2,168,837 already paid; balance of $2,156,834 plus interest to be paid.