Reserved Judgment — claim for interest as damages — Clarkson v Whangamata Metal Supplies Ltd [2008] 3 NZLR 31. The plaintiff sought an order for interest as damages for interest it paid on its overdraft accounts following delayed invoice payments by the defendant. The plaintiff and defendants were competitors in the laundry business. Following a fire at the defendant's premises, a representative of the company approached the plaintiff requesting supply of various products and services, which the plaintiff agreed to do. It was a "handshake deal", with no written documentation, however, the oral agreement laid out the terms, including that the plaintiff would invoice the defendant on a monthly basis. Between June 2014 and September 2014, the defendant used the plaintiff's facilities according to the terms of the oral agreement paying invoices reasonably promptly. In September 2014, the defendant's new site was operating, with the exception of roller towel work, which continued at the plaintiff's premises. Once operating from the new site, the defendant delayed payment on amounts outstanding for the ordinary laundry work. The plaintiff claimed for interest as damages, a sum of $22,208.30. The Judge applied the test in Clarkson v Whangamata Metal Supplies Ltd, holding that the defendant ought to reasonably have foreseen that if the defendant did not pay the debt owing, the plaintiff might incur interest on any overdraft it may have had. The Judge noted that the representative for the defendant was an experienced businessman and would have been aware of that possibility. It was unnecessary that the defendant have actual knowledge of the existence of any overdraft. Further the lack of a contractual term relating to interest did not preclude the plaintiff from claiming interest as damages. The Judge ordered the defendant to pay the sum of $22,208.30 as damages for the period to 1 December 2018, together with the additional interest accrued to the date of the judgment. Additionally, the Judge noted the plaintiff is prima facie entitled to recover costs on a 2B basis, together with disbursements. ment Date: 18 December 2018.