Phoenix Commercial Enterprises Pty Ltd v City of Canada Bay Council (No 2)

[2010] NSWCA 183

NSW Court of Appeal

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Interrogate

Catchwords

1. Practice and Procedure
2. › Interest on judgments
3. › Judgment debt
4. › Interrelationship of contractual covenant to pay interest and statutory provision for interest on judgment debts
5. › Whether contractual interest covenant merges in judgment
6. › Civil Procedure Act 2005 (NSW), s 101
1. Contract
2. › Merger of contractual obligations in judgment
3. › Covenant to pay interest on unpaid rent
4. › Whether covenant merges in judgment for principal sum

Quick Take

A contractual covenant to pay interest on unpaid rent merges in a judgment for the principal sum and ceases to be enforceable. Post-judgment, the creditor is entitled only to statutory interest on the judgment debt under s 101 of the Civil Procedure Act 2005 (NSW), not contractual interest.

Case Details

Citation[2010] NSWCA 183

CourtNSWCA

JurisdictionNew South Wales

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Relies on2

2010Phoenix Commercial Enterprises Pty Ltd v City of Canada Bay CouncilNSWCA 64
2009Phoenix Commercial Enterprises v City of Canada Bay CouncilNSWSC 17

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