Benchmark
A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.
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Insurance

Friday, 7 November 2014
Executive Summary (One Minute Read)
Suzlon Energy Ltd v Bangad (No 2) (FCA) - damages - assessment of appropriate rate of pre-judgment interest to apply where principal amounts in US dollars and euros
Bellaluz Pty Ltd v Westpac Banking Corp (QSC) - mortgage - challenge to valuation evidence underpinning sale of property - bank granted security for costs
Summaries With Link (Five Minute Read)
Suzlon Energy Ltd v Bangad (No 2) [2014] FCA 1173
Federal Court of Australia
Rares J
Damages - pre-judgment interest - Court found Suzlon parties entitled to judgment in very substantial sums in United States dollar and euro amounts - Court directed Suzlon parties to file evidence as to interest rates in those currencies for purpose of establishing an appropriate basis on which an award of pre-judgment interest could be made under s51A Federal Court of Australia Act 1976 (Cth) - large interest rate differential between cash rates in Australia and those of other currencies - compensatory purpose of award of pre-judgment interest - held: Court of opinion that methodology used by Suzlon parties to calculate interest on United States dollar and euro amounts for the various periods during which the respective Suzlon party was deprived of the use of those moneys was reasonable and appropriate - rates that Suzlon parties' evidence established and manner of calculation ought be applied to award of pre-judgment interest pursuant to s 51A - amounts to form part of sums for which Court would enter judgments.
Suzlon Energy Ltd
Bellaluz Pty Ltd v Westpac Banking Corp [2014] QSC 273
Supreme Court of Queensland
A Wilson J
Security for costs - first defendant bank entered business finance agreements with first plaintiff company and second plaintiff sole director - company and director provided security for the financial accommodation under agreements in the form of a mortgage over property and guarantee and indemnity - company defaulted in repayments - second and third defendants were appointed receivers and managers of property mortgaged to defendant - plaintiffs initially commenced proceedings against bank -plaintiffs disputed valuation evidence underpinning sale of property - defendants sought an order company provide security for the defendants' costs - held: it could not be said plaintiffs had strong case - impecuniosity not readily capable of being traced to defendants' conduct - concern to avoid the risk that plaintiffs were driven off by order for security for costs had to be balanced against doing justice to defendants notwithstanding bank's status as a very large wealthy financial institution - security for costs granted.
Bellaluz Pty Ltd

A Palinode

By Edmund Bolton

As withereth the primrose by the river,
As fadeth summer's sun from gliding fountains,
As vanisheth the light-blown bubble ever,
As melteth snow upon the mossy mountains:
So melts, so vanishes, so fades, so withers
The rose, the shine, the bubble and the snow
Of praise, pomp, glory, joy - which short life gathers -
Fair praise, vain pomp, sweet glory, brittle joy.
The withered primrose by the mourning river,
The faded summer's sun from weeping fountains,
The light-blown bubble, vanish├ęd for ever,
The molten snow upon the naked mountains,
Are emblems that the treasures we up-lay
Soon wither, vanish, fade and melt away.

For as the snow, whose lawn did overspread
The ambitious hills, which giant-like did threat
To pierce the heaven with their aspiring head,
Naked and bare doth leave their craggy seat;
Whenas the bubble, which did empty fly
The dalliance of the undiscern├ęd wind,
On whose calm rolling waves it did rely,
Hath shipwreck made, where it did dalliance find;
And when the sunshine, which dissolved the snow,
Coloured the bubble with a pleasant vary,
And made the rathe and timely primrose grow,
Swarth clouds withdrawn (which longer time do tarry) -
Oh, what is praise, pomp, glory, joy, but so
As shine by fountains, bubbles, flowers or snow?

Edmund Bolton