COX v COUGHLAN [2015] NZHC 1720

COX v COUGHLAN [2015] NZHC 1720

Clause 3.12 is limited to interest on unpaid portions of a monetary purchase price and is not apt to apply to a property swap where no money was to change hands; the plaintiffs already received rental damages for their loss, so awarding contractual penalty interest would be unjustified double recovery; claim for...

Source-derived case information.

Citation
[2015] NZHC 1720
Parties
First Plaintiff: GARY DAVID COX; First Plaintiff: STEVE COWIE; First Plaintiff: GARY DAVID SUTCLIFFE; Second Plaintiff: GARY DAVID COX; Defendant: MICHAEL JOHN COUGHLAN; Defendant: ANNEMARIE ELIZABETH WILSON
Court
High Court
Jurisdiction
New Zealand
Judgment Date
24 July 2015
Procedural Posture
Contract — Specific Performance and Damages (property Swap) / Damages and Costs Judgment Following Court of Appeal Remittal
Outcome
Damages awarded as agreed; penalty interest declined; costs in respect of penalty interest and the damages issues to lie where they fall
Legal Topics
Specific Performance, Penalty Interest, Damages, Costs, Contract Interpretation, Property Swap
Contract Property Equity Civil Procedure Specific Performance Penalty Interest Damages Costs +2 more

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Parties

GARY DAVID COX

First Plaintiff

STEVE COWIE

First Plaintiff

GARY DAVID SUTCLIFFE

First Plaintiff

GARY DAVID COX

Second Plaintiff

MICHAEL JOHN COUGHLAN

Defendant

ANNEMARIE ELIZABETH WILSON

Defendant

Procedural Posture

Contract — Specific Performance and Damages (property Swap) / Damages and Costs Judgment Following Court of Appeal Remittal

Legal Issues

  1. 1 Whether a contractual penalty/late interest clause applies where a property swap involved no money changing hands
  2. 2 Whether contractual interest under clause 3.12 survives or is payable following an order for specific performance
  3. 3 Whether awarding interest would result in double recovery/windfall given separate award of rental damages

Ratio Decidendi

Clause 3.12 is limited to interest on unpaid portions of a monetary purchase price and is not apt to apply to a property swap where no money was to change hands; the plaintiffs already received rental damages for their loss, so awarding contractual penalty interest would be unjustified double recovery; claim for penalty interest is dismissed.

Court Disposition

Damages awarded as agreed; penalty interest declined; costs in respect of penalty interest and the damages issues to lie where they fall

Orders

  • Judgment entered for damages in the total sum of 21821.5 NZD
  • Sealed judgment already included 12502.42 NZD; balance of rental damages to be entered as 9319.08 NZD