Where a judgment sum is reduced on appeal and the appellant has already paid the full amount, the overpayment must be repaid and cannot be offset against the respondent's untaxed costs entitlement, as this would amount to a de facto order for security for costs. Interest on the overpayment is payable at a restitutionary rate — neither the penalty rate nor the average retail deposit rate — but a rate that does justice between the parties, which in the present case was fixed at 2% per annum. A party that succeeds in reducing a judgment on appeal but fails to achieve its primary objective (here, reinstatement of nominal damages) may be awarded only a modest proportion of appeal costs.
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