Hosken, Ian John & Anor v Telstra Pty Ltd [1998] FCA 451

Hosken, Ian John & Anor v Telstra Pty Ltd [1998] FCA 451

The Court awarded a lump sum of $40,000 interest under s 51A(1)(b) because the competing calculations substantially converged when a broad commercial average rate of 10.5% per annum was applied. Although Telstra's offer was construed on balance as $185,000 plus reasonable interest to be agreed, making the applicants' judgment less favourable than the offer, the uncertainty created by the offer being exclusive of interest and expiring after 14 days justified an order other than the usual O 23 r 11 costs consequence: the applicants were to have costs only up to 11.00 am on 2 February 1996, with no order for costs thereafter.

Jurisdiction
Australia
Judgment Date
16 April 1998
Procedural Posture
Proceedings for Recovery of Money Including Damages / Determination of Interest and Costs After Judgment on Liability and Relief
Outcome
Interest awarded in a lump sum and costs limited to the applicants' costs up to 11.00 am on 2 February 1996, with no order as to costs thereafter.
Legal Topics
['pre Judgment Interest Under S 51 A(1) of the Federal Court of Australia Act 1976' 'offer of Compromise' 'costs Consequences of Unaccepted Offer' 'lump Sum Interest']
['civil Procedure' 'costs' 'interest on Judgment'] ['pre Judgment Interest Under S 51 A(1) of the Federal Court of Australia Act 1976' 'offer of Compromise' 'costs Consequences of Unaccepted Offer' 'lump Sum Interest']

Case Brief

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Procedural Posture

Proceedings for Recovery of Money Including Damages / Determination of Interest and Costs After Judgment on Liability and Relief

Legal Issues

  1. 1 ['What rate and mode of calculation should be adopted for interest under s 51A(1) of the Federal Court of Australia Act 1976.' "Whether the applicants' judgment was more favourable than Telstra's offer of compromise expressed as $185,000 exclusive of interest." 'What costs order should be made under O 23 r 11(5) and (6) in light of the unaccepted offer of compromise.']

Ratio Decidendi

The Court awarded a lump sum of $40,000 interest under s 51A(1)(b) because the competing calculations substantially converged when a broad commercial average rate of 10.5% per annum was applied. Although Telstra's offer was construed on balance as $185,000 plus reasonable interest to be agreed, making the applicants' judgment less favourable than the offer, the uncertainty created by the offer being exclusive of interest and expiring after 14 days justified an order other than the usual O 23 r 11 costs consequence: the applicants were to have costs only up to 11.00 am on 2 February 1996, with no order for costs thereafter.

Court Disposition

Interest awarded in a lump sum and costs limited to the applicants' costs up to 11.00 am on 2 February 1996, with no order as to costs thereafter.

Orders

  • ['There be included in the sum for which judgment is given a lump sum of $40,000 in lieu of interest under s 51A(1)(b) of the Federal Court of Australia Act 1976.' 'The applicants have their costs up to 11.00 am on 2 February 1996, such costs to be taxed.' 'No order as to the costs of either party after 11.00 am on...