Hungerfords v Walker [1989] HCA 8

High Court of Australia Mason C.J. Wilson, Brennan, Deane and Dawson JJ. Hungerfords v Walker [1989] HCA 8

ORDER Grant of special leave to appeal varied by excluding therefrom grounds (p), (q), (r) and (s) referred to in the notice of appeal. Appeal dismissed with costs. Application for special leave to cross-appeal refused with costs.

Cur. adv. vult.

The following written judgments were delivered:—

1989, Feb. 9 Mason C.J. and Wilson J.

This appeal raises the important question whether, at common law, a court, when awarding damages for breach of contract or negligence, can include in its award damages, assessed by reference to appropriate interest rates, for the loss of the use of money which the plaintiff paid away and lost as a direct consequence of the defendant's breach of contract or negligence. There is the further question whether the presence of s. 30c of the Supreme Court Act 1935 SA ("the Act") inhibits any development of common law principles which would favour an affirmative answer to the primary question. The appellants would be entitled to an award of interest under s. 30c in the absence of good cause shown. However, it has not been suggested that the relevant component of the damages awarded to the appellant could be accommodated within the ambit of the power conferred by the section: but cf. Wheeler v. Page [24] .

1. (1982) 31 S.A.S.R. 1, at p. 5.

The appellants, who are accountants, were the defendants in an action in the Supreme Court of South Australia brought by the respondents. The respondents carried on business under the name of Radio Electrix, selling, hiring and servicing television sets and other electronic goods. In 1982 the business was transferred to Walker Stores Pty. Ltd., that company having been incorporated to acquire and conduct thereafter the respondents' business. The appellants were engaged to prepare the partnership and individual income tax returns for the respondents for the years ended 30 June 1974 to 30 June 1981. The partnership paid the income tax of each partner out of its trading account and the amount was debited to the personal account of each partner in the books of the partnership.