DERKATCH v LYKO [2026] SADC 57
On Appeal from DISTRICT COURT OF SOUTH AUSTRALIA (HER HONOUR JUDGE DEUTER)
Applicant: ALEXANDER DERKATCH In Person
Respondent: LIDIA LYKO In Person
Hearing Date/s: 02/03/2026
File No/s: CIV-25-015226
B
DISTRICT COURT OF SOUTH AUSTRALIA
(Civil: Appeal Against a Master)
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DERKATCH v LYKO
[2026] SADC 57
Reasons for Decision of her Honour Judge Deuter
22 May 2026
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS
- JUDGMENTS AND ORDERS - INTEREST ON JUDGMENTS - GENERALLY
PROCEDURE - CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS
- JUDGMENTS AND ORDERS - INTEREST ON JUDGMENTS - TIME FROM
WHICH INTEREST RUNS
Applicant sought a review of orders made by an Associate Judge in relation to interest payable on a
judgment in his favour against the respondent.
The proceedings between the parties concerned issues that commenced in 2012, involving family
members. Ultimately, the parties were appointed executors of the respective family members upon
their death.
Several judgments in 2018 determined the issues between the parties, including the costs of the
action. There were then delays regarding finalisation of the proceedings and the applicant sought
interest.
On 30 November 2018 the primary judgment awarded damages to the applicant of $28,435.69
inclusive of interest to that date. Costs were however awarded in the respondent's favour at 20% of
her costs as claimed.
Neither party took any step to recover their debt until late 2024, when the applicant sought to initiate
enforcement proceedings to recover the judgment sum. At that stage the respondent’s costs had not
been taxed. A taxation proceeded on 13 October 2025, and the respondent’s costs were assessed at
$24,107.00. This meant that the total amount payable to the applicant was $4,328.69.
Determination of interest payable, and the provisions of section 40 of the District Court Act 1991.
Held:
1. Offset sum of $4,328.69 remains payable by the respondent to the applicant.
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2. Interest is payable by the respondent in the sum of $11,869.83.
3. The total amount payable by the respondent is $16,198.52.
4. Time granted for payment is 90 days from today's date.
District Court Act 1991 (SA) ss 40, 43; Supreme Court Act 1935 (SA) s 114; Uniform Civil Rules
2020 (SA), referred to.
Lyko v Derkatch [2018] SADC 90; Lyko v Derkatch (No 2) [2018] SADC 141, discussed.
Malaugh Holdings (No 2) P/L & Anor v Seal & Anor (No 2) [2011] SADC 37; McLean v D.I.D.
Piling Pty Ltd [2010] SASC 33; Fox v Percy (2003) 214 CLR 118; CSR Ltd v Della Maddalena
(2006) 80 ALJR 458; Adelaide (SA Pools & Spa) Manufacturing and Installation Pty Ltd & Ors v
Westcourt General Insurance Brokers Pty Ltd [2016] SASC 60; Leadenhall Australia Pty Ltd v
Doman & Anor [2024] SASCA 77, considered.
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DERKATCH v LYKO
[2026] SADC 57
Introduction
1 On 28 November 2025 Associate Judge Blumberg made orders in relation to
the interest payable by the respondent (Ms Lyko) in an earlier action (the action)
between her, and the applicant (Mr Derkatch).1
2 Associate Judge Blumberg concluded that, after taking into account previous
orders made, that Mr Derkatch had an entitlement to interest in the sum of
$6,146.74 as the judgment creditor in the action.2
3 The order that interest of $6,146.74 was payable by Ms Lyko is appealed by
Mr Derkatch on multiple grounds. His case is that the interest payable should have
been a larger sum. A summary of his grounds of appeal are:3
(i) that the Associate Judge incorrectly calculated the interest amount
applicable to the monetary judgment in his favour, made on 30
November 2018, in the sum of $28,435.69 (inclusive of interest to that
date).
(ii) that an error had occurred as the Associate Judge had incorrectly
calculated the interest over a seven year period by using a backdated
offset sum of $4,328.69. This offset sum was calculated applying the
judgment sum, less the costs awarded to Ms Lyko after the taxation of
the costs of the action were determined on 8 October 2025.
(iii) that the Associate Judge should have calculated the interest applicable
to the monetary judgment of $28,435.69 by using a two-step process.
The first step being to calculate interest from the judgment date
(30/11/2018) to the date of adjudication of costs (8/10/2025) pursuant
to s 40 (2)(b) of the District Court Act 1991 (District Court Act) at the
rate of 6%, as set out in the rules.
The second step being to calculate the amount of interest in relation to
the unpaid taxed costs awarded to Ms Lyko on 8 October 2025
pursuant to s 40(2)(a) of the District Court Act. This interest would
again be at 6%.
(the two-step process).
1 Derkatch v Lyko: DCCIV-12-1359.
2 FDN 138 of DCCIV-12-1359.
3 FDNs 1 and 3 of CIV-25-015226.
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(iv) that if the two step process was performed, the Associate Judge should
have awarded interest on the judgment and costs at $14,351.00.
After changing his claim on appeal Mr Derkatch sought orders that Ms Lyko
pay:4
(1) $14,351.00 as interest on the judgment sum of $28,435.69 for the period
between 30/11/2018 and 8/10/2025, calculated by using a rate of 6%
over seven years;5
(2) interest at a rate of 6% on $4,328.69, being the costs offset sum, for the
period from 8/10/2025 until paid, this to be calculated at $5.00 per
week;
(3) the sum of $4,328.69, being the offset amount adjudicated by the Court
on 8/10/2025 in relation to costs and general damages, and which has
never been paid by Ms Lyko.
4 In his written submissions dated 12 February 2026, as amended at the appeal
hearing,6 Mr Derkatch submitted that interest should have been calculated as
follows:
(1) On the judgment sum of $28,435.69 from 30 November 2018 to
30 September 2024, interest of $12,047.00;
(2) On the offset amount being $4,328.69 after Ms Lyko’s costs were
assessed at $24,107.00 and subtracted from the judgment sum of
$28,435.69 for the period from 30 September 2024 to 8 October 2025,
interest of $1,743.47;
(3) The total interest from 30 November 2018 to 8 October 2025 was
therefore $13,790.47;
(4) That interest on the offset sum pursuant to UCR 185.1(1) is 6% of
$4,328.69 which equates to $259.72 per annum, or $5.00 per week,
from 8 October 2025 until paid.7
5 Mr Derkatch also sought a raft of other orders regarding issues that dated
back over the lengthy course of the ligation between the parties. During the appeal
hearing, these applications were withdrawn as they were significantly out of time,
and not relevant to the appeal. I will only address those matters if relevant to the
issues to be determined.
4 FDN 1 at Part 3 of CIV-25-015226.
5 Calculations on page 6 of FDN 4.
6 FDN 4.
7 FDN 4 at paragraphs 30-46.
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Background
6 The proceedings between the parties have their genesis in a domestic
partnership between Nicolas Tsiplakidis (Nicolas) and Valentia Petrenko
(Valentia). In 2012, after separation, Valentia brought proceedings to determine a
division of domestic assets (the action). Both parties died before the action was
finalised. As a result, Ms Lyko was substituted for Valentia, as her daughter, and
the executor of her estate. Mr Derkatch was Nicolas’ great nephew and the
executor of his estate. Nicolas was also Ms Lyko’s father, although she was
estranged from him, due to alleged domestic violence against her and Valentia.
Mr Derkatch was substituted as the executor of Nicolas’ estate.
7 The parties could not resolve the dispute between them, regarding a division
of the assets of Nicolas and Valentia. The action was therefore commenced by
Ms Lyko. A trial was conducted before Judge Schammer in 2018. Her first
decision was handed down on 30 August 2018.8 Formal orders were entered on
30 November 2018. A further decision in relation to the costs of the action, was
handed down on 21 December 2018. 9
8 The action concerned a property at Alberton purchased in 1963 by Nicolas
and Valentia as joint tenants (the property). There is no need to canvas the issues
before Judge Schammer. Her ultimate decision, after Nicolas had died, was
delivered on 30 August 2018. Judgment was entered on 30 November 2018.10 The
judgment was clarified in a decision of 21 December 2018.11 Judge Schammer held
that:
(i) the joint tenancy in the property had not been severed by actions taken
by Nicolas to leave the property, and live elsewhere, for several years;
(ii) Nicolas was wrongfully excluded from the property between 1 January
2011 until his death on 19 December 2014. As a result he was entitled
to ‘ouster’ damages which passed to his estate;
(iii) upon Nicolas’ death, Valentia assumed sole ownership of the property
as the surviving joint tenant, meaning Mr Derkatch had no claim for
occupation rent after the date of Nicolas’ death;
(iv) on the cross-action, regarding Mr Derkatch’s claim for damages,
resulting from Nicholas not being able to re-enter the property before
his death, ‘ouster’ damages of $28,435.69, inclusive of interest, were
awarded as a judgment in his favour.12
8 Lyko v Derkatch [2018] SADC 90.
9 Lyko v Derkatch (No 2) [2018] SADC 141.
10 Lyko v Derkatch [2018] SADC 90.
11 Lyko v Derkatch (No 2) [2018] SADC 141.
12 FDN 109 of DCCIV-12-1359.
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9 Although there was a clarification, and reasons delivered on 21 December
2018, I find that judgment was formally entered in Mr Derkatch’s favour on
30 November 2018.
10 On 21 December 2018 Judge Schammer made orders in relation to costs. She
determined that costs should be awarded on a broad-axe assessment. After detailed
consideration she concluded that Mr Derkatch was to pay Ms Lyko 20% of her
costs of the entire action on a party/party basis, less the cost of one day’s trial fee.
This order took into account Mr Derkatch’s success in the part of the action related
to the ‘ouster’ damages. There was no order made granting Mr Derkatch his costs
of the action.
11 Neither party took any further steps in relation to the action until late 2024,
when Mr Derkatch sought to initiate enforcement proceedings to recover the
$28,435.69 awarded to him by Judge Schammer. Mr Derkatch’s application led to
a hearing before the Deputy Registrar. It was noted that the costs of the action
awarded by Judge Schammer had never been taxed. An order was therefore made
that Ms Lyko’s costs be taxed, as per the orders of Judge Schammer.
12 A taxation of costs came on before Auxiliary Associate Judge Forrest on
13 October 2025. After conducting the taxation, he certified Ms Lyko’s legal costs
at $24,107.00, after the required 80% reduction was applied. The taxation is not
appealed by Mr Derkatch, although in his materials it is clear that he did not agree
with the decision. He has only appealed the decision of Associate Judge Blumberg,
and not the taxation of costs.
13 After the taxation was conducted by Auxiliary Associate Judge Forrest, the
matter was listed back before Associate Judge Blumberg for final orders. In
determining these orders Associate Judge Blumberg noted that, taking account of
the costs awarded to Ms Lyko and assessed in the sum of $24,107.00, and the
damages awarded to Mr Derkatch by Judge Schammer of $28,435.69, the final net
amount payable by Ms Lyko to Mr Derkatch was $4,328.69 (the offset sum).
14 He determined that, given Mr Derkatch's entitlement to damages was
determined by Judge Schammer on 30 November 2018, the interest payable to him
was in relation to the seven years since he was awarded $4,328.89 (taking account
of the costs order in Ms Lyko’s favour). Applying the applicable District Court
rate of 6% interest on $4,328.89 totalled $1,818.05. Associate Judge Blumberg
concluded that the total sum owing to Mr Derkatch was therefore increased to
$6,146.74.13 The action was then referred to the Registrar to undertake enforcement
procedures for payment of that sum, as a debt.
13 FDN 138 of DCCIV-12-2359.
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Notice of Appeal
15 Mr Derkatch filed a Notice of Appeal on 16 December 2025.14 By that Notice,
which was amended by Mr Derkatch in writing, he sought only one order. This
was to challenge Associate Judge Blumberg’s order that:
Pursuant to UCR 11.2 (2) (6) I refer the enforcement process to the Registrar or her delegate
to undertake the enforcement procedures in Chapter 17 of the UCR in relation to the sum
of $6,146.74.
16 Mr Derkatch set out extensive grounds of appeal. I summarise those that are
relevant to the appeal before me:
(i) that Associate Judge Blumberg incorrectly calculated the interest
applicable to the monetary judgment in his favour of 30 November
2018, ($28,435.69) by also taking into account the interest over a
period of seven years, upon the costs awarded to Ms Lyko of
$24,107.00. This led to him awarding interest only on the balance of
the sum owing to him of $4,328.69 (the offset sum);
(ii) that the correct approach was rather to apply the provisions of s 40 of
the District Court Act, this section described as Interest on Judgment
Debts;
(iii) that the interest applicable on $28,435.69 should have been calculated
using the two-step process, as set out in s 40(2) (a) and (b) of the
District Court Act;
(iv) that the District Court Act specifically distinguishes between the
calculation of interest on judgment debts as between two categories,
being, ‘adjudicated costs’ and ‘other monetary sums’. Mr Derkatch
argued that this is similar to how costs are determined in the Supreme
Court pursuant to s 114 of the Supreme Court Act 1935;
(v) that Associate Judge Blumberg incorrectly calculated the interest
amount by applying a 6% interest rate for 7 years on $4,328.69. He
argued that the Associate Judge should have applied the applicable
interest on $28,435.69, taking into account pre and post
commencement of the Uniform Civil Rules 2020 (UCR). This is
another reason why the two-stage process should have been used;
(vi) that an offsetting procedure was appropriate in relation to the
judgment sums awarded to each party, to prevent duplication of
payments. However, the calculation of interest should still have been
assessed as per s 40 (2) (a) of the District Court Act;
14 CIV-25-015226 (FDN 1.).
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(vii) that he was not required to take any positive action in relation to the
cost orders made by Judge Schammer. The obligation was first upon
Ms Lyko to provide her costs in relation to those orders, so that the
20% owed by him could be determined. This did not occur until
October 2025, some seven years after Judge Schammer had awarded
Ms Lyko 20% of her costs of the action. As a result, he claimed that
any interest relevant to costs should only run from when Ms Lyko
presented her costs to Mr Derkatch, and to the court, for adjudication.
This however did not impact the interest on the judgment in his favour
sum being accrued from when the order were made on 30 November
2018;
(viii) that the court should take into account what he described as the
‘exceptional misconduct, unreasonableness, and fraudulent
allegations of (Ms Lyko) throughout the taxation of costs’.15
17 There is no doubt that there was a significant delay in Ms Lyko presenting
her claim for costs. I find that there are a number of issues that are relevant to
Ms Lyko’s delay and failure in providing her costs claim to Mr Derkatch’s
solicitors. These are her failure to appear before Judge Schammer on 3 September
2024 and 29 November 2024; the filing of a costs claim of $179,163.22 with no
supporting evidence so that Mr Derkatch could not verify those costs; her failure
to submit a Form 145 questionnaire as ordered; and the making of a significant
claim for costs from entities such as Justice Net ($44,000.00) and Westside
Lawyers ($4,654.00), when there was no evidence of Justice Net claiming any fees,
and that Ms Lyko had only paid $500 to Westside Lawyers. These issues impact
the interest to be awarded upon the costs judgment.
18 Mr Derkatch described Ms Lyko’s actions as being fraudulent misconduct.
He was also critical of Auxiliary Associate Judge Forest who conducted the
assessment of Ms Lyko’s costs, and Associate Judge Blumberg in his approach to
assessing costs. He argued that they:
… should have given more consideration to the Judgment Debtor’s
(Ms Lyko’s) demonstrably false submissions, verbal and written, attesting to
her bad character, serious irregularities, unreliability, and ongoing lack of
co-operation.16
19 Whilst I acknowledge Mr Derkatch’s frustration, these issues are not part of
the appeal. He did not appeal the result of the taxation of costs conducted by
Auxiliary Associate Judge Forest. I also reject Mr Derkatch’s application
(contained in paragraph 43 of his appeal grounds) whereby he sought to overturn
the original costs order made by Judge Schammer on 21 August 2018, that
Ms Lyko be awarded 20% of her costs. 17 Any appeal of that decision was seven
15 Paragraph 18 of Grounds of Appeal (FDN 1).
16 FDN 1 at paragraph 47 of Grounds of Appeal.
17 FDN 1 at paragraph 43.
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[2026] SADC 57
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years out of time. There was no application seeking an extension of time to appeal
Judge Schammer’s ruling. In any event, on the material before me, I find that no
special reasons exist to extend the time for an appeal of Judge Schammer’s
decision.
Nature of the Appeal
20 The right of appeal pursued by Mr Derkatch in these proceedings arises from
s 43 of the District Court Act. This provides that:
(1) A party to an action may, in accordance with the rules of the appellate court appeal
against any judgment given in the action.
(2) The appeal lies –
…
(a) in the case of a judgment given by an Associate Judge or the Court constituted
of an Associate Judge—to the Court constituted of a Judge;
…
(3) The appeal lies as of right, or by permission, according to the rules of the appellate
court but, in the case of an appeal against a final judgment of the Court in its
Administrative and Disciplinary Division, permission is required to appeal on a
question of fact.
21 The term ‘judgment’ for this purpose is defined in s 3 of the Act as ‘a
judgment, order or decision and includes an interlocutory judgment or order’.
22 The jurisdiction of the District Court to hear and determine an appeal is to be
exercised by a Judge pursuant to UCR 212.7. The appeal is to be by way of a
re-hearing. UCR 217.10 provides that:
(1) Subject to any statute to the contrary—
(a) an appeal or review is to be by way of rehearing;
(b) the Court may draw inferences from evidence adduced in the proceeding
at first instance; and
(c) the Court may hear further evidence in its discretion.
(2) The Court may, if it considers that it is in the interests of justice to do so,
determine an appeal on the merits notwithstanding a failure of a party to raise or
state properly a ground of appeal or alternative contention in the notice of appeal,
notice of review or a notice of alternative contention.
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23 The nature of this type of appeal was discussed by Layton J in McLean v
D.I.D. Piling Pty Ltd,18 where she said:
[18] Accordingly, the appeal is to be by way of a rehearing. This Court is therefore
obliged to conduct a real review of the decision and of the Master’s reasons.19 As Kirby J
(with whom Gleeson CJ agreed) said in CSR Ltd v Della Maddalena:20
[T]he appellate court is obliged to conduct a thorough examination of the record and a real
rehearing. It is not confined to reconsideration of the record in order to correct errors of
law, although that will certainly be encompassed in such an appeal. It is required to consider
suggested errors of fact-finding. Experience teaches that many errors of this kind arise at
first instance, more perhaps than errors of law. Having concluded a rehearing as so
described, the appellate court is obliged to “give the judgment which in its opinion ought
to have been given in the first instance”. This involves, where, as here, there is no jury,
conducting a thorough review of the primary judge's reasons and engaging in the tasks of
“weighing conflicting evidence and drawing ... inferences and conclusions”.
[Footnotes omitted.]
24 In relation to an appeal from an exercise of discretion, Layton J went on to
state:
[22] … it is appropriate to follow the well known rules in House v The King, which case
sets out the circumstances in which an appellate court would disturb an exercise of
discretion. In that case the High Court said (at 504-5):
The manner in which an appeal against an exercise of discretion should be
determined is governed by established principles. It is not enough that the judges
composing the appellate court consider that, if they had been in the position of the
primary judge, they would have taken a different course. It must appear that some
error has been made in exercising the discretion. If the judge acts upon a wrong
principle, if he allows extraneous or irrelevant matters to guide or affect him, if he
mistakes the facts, if he does not take into account some material consideration, then
his determination should be reviewed and the appellate court may exercise its own
discretion in substitution for his if it has the materials for doing so. It may not appear
how the primary judge has reached the result embodied in his order, but, if upon the
facts it is unreasonable or plainly unjust, the appellate court may infer that in some
way there has been a failure properly to exercise the discretion which the law reposes
in the court of first instance. In such a case, although the nature of the error may not
be discoverable, the exercise of the discretion is reviewed on the ground that a
substantial wrong has in fact occurred.
[23] Accordingly, it is necessary that the appellant identify an error by the Master of the
kind described in House v The King before any appeal should be allowed.
[Citations omitted]
18 [2010] SASC 33.
19 Fox v Percy (2003) 214 CLR 118, 126-7[25].
20 (2006) 80 ALJR 458, 465 [16].
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25 These principles were restated by Doyle J in Adelaide (SA Pools & Spa)
Manufacturing and Installation Pty Ltd & Ors v Westcourt General Insurance
Brokers Pty Ltd,21 and I will apply them in determining this appeal.
Leave to Appeal
26 It is not clear if Mr Derkatch sought leave to appeal the decision of Associate
Judge Blumberg. However, it was clearly his intention, and to ensure there is no
confusion, I grant leave to him to appeal.
Consideration
27 The manner in which interest on judgment debts is to be applied is set out in
s 40 of the District Court Act. This provides:
(1) A judgment debt bears interest at a rate prescribed by the rules.
(2) Subject to any direction by the Court to the contrary, the interest runs—
(a) in the case of adjudicated costs—from the date the costs are adjudicated or an
earlier date fixed by the adjudicating officer;
(b) in the case of any other monetary sum—from the date of the judgment.
28 Judge Smith in Malaugh Holdings (No 2) P/L & Anor v Seal & Anor (No 2)22
noted that the term ‘judgment debt’ in s 40(1) was not defined in the District Court
Act.23 As a result he determined that the use of the term in s 40(1) meant:
… any money owed pursuant to a judgment of the Court. In this respect I agree with the
learned author of Note 1 under s 40 in Lunn’s Civil Procedure South Australia Volume I.24
Judge Smith went on to state:
Further, a consideration of the provision as a whole indicates also that the legislature
intended that “judgment debt” also include “taxed costs”. In particular:
Section 40(1) provides generally that a judgment debt will carry interest; and
Section 40(2) deals with from when interest is to run on the judgment debt, and in doing
so divides judgment debt into two component parts, namely taxed costs and any other
monetary sum.
Accordingly, it is clear that the judgment debt (in s 40(1)) is made up of taxed costs (in
s 40(2)(a)), and any other monetary sum in s 40(2)(b). The evident intent of the draftsman
in dividing judgment sum into those two component parts is, inter alia, to flag to the Court
that in the exercise of its discretion as to the running of interest, the Court could, in the
appropriate case, order that interest run on costs from a date earlier than taxation.
21 [2016] SASC 60 at [22].
22 [2011] SADC 37.
23 Ibid at [59].
24 Ibid at [60].
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29 In a recent judgment of the Court of Appeal, Leadenhall Australia Pty Ltd v
Doman and Anor25 (Leadenhall), it was determined that a proper construction of
s 40(2) of the District Court Act, in combination with the Enforcement of
Judgments Act 1991 meant that interest begins to accrue on any District Court
judgment debt automatically, from the date of the judgment. Justice Blue wrote the
leading judgment. He found that ‘… s 40 does not create a statutory cause of action
to recover post-judgment interest but directly augments the judgment debt.’26
30 He found that this position was consistent with the plain meaning of the
words in s 40 that the judgment debt ‘bears’ interest,27 and meant that ‘interest
accrues on, and augments, a judgment debt automatically’.28
31 In relation to interest generally, Justice Blue stated that s 40 provides that, in
each case, (the date of judgment and the date of fixing costs respectively) interest
runs from the fixing of the monetary sum. However, … this is subject only to
exercise of discretion by the Court (including the adjudicating officer in the case
of costs) to order otherwise.29
32 Upon reviewing Justice Blue’s judgment in Leadenhall, I find that the
Associate Judge made an error in determining the interest upon the judgment debt,
by applying the debt owed to Ms Lyko for her legal costs, for the period before
those costs were adjudicated. In my view this was not a case where an offset sum
was applicable given, Ms Lyko’s delay in providing her legal costs to Mr Derkatch,
and therefore the significant delay in taxing costs. This was not something
Mr Derkatch should be responsible for.
33 The judgments awarded to each party in the action, were handed down over
7 years apart. No explanation at all was provided as to why, during that period, Ms
Lyko did not pay the damages awarded to Mr Derkatch on 30 November 2018, nor
take action to have her costs taxed. In fact, she took no action until the Deputy
Registrar indicated the costs had not been taxed in late 2024.
34 I find that the fact scenario is one to which s 40 of the District Court Act
applies. Interest on the judgment began to run from 30 November 2018. The orders
in relation to costs were not made until 28 November 2025. I find that interest on
the judgment, in Mr Derkatch’s favour accrued from when the judgment sum was
finalized on 30 November 2018, until 28 November 2025.
35 In these proceedings, if interest was automatically applied at 6% per annum
on the primary judgment of Judge Schammer, of $28,435.69, from 30 November
2018 to 8 October 2025 the interest payable by Ms Lyko was $11,704.83. Interest
25 [2024] SASCA 77 (26 June 2024).
26 Ibid at [62].
27 Ibid at [63].
28 Ibid at [68].
29 Ibid at [5a].
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has continued to run, and is enforceable. However since 13 October 2025 Ms Lyko
has had a determination of her legal costs.
36 In relation to interest payable on Ms Lyko’s legal costs, while I find that
s 40(2) of the District Court Act applies, and that interest runs from the date that
the costs were adjudicated, the costs in Ms Lyko’s favour were not adjudicated
until 13 October 2025 in the sum of $24,107.00. This was a result of her delay, and
not the fault of Mr Derkatch.
37 On 13 October 2025 costs were awarded in Ms Lyko’s favour of $24,107.00.
I find that this award of costs determined the monetary judgments between the two
parties. As at 13 October 2025, there was a judgment in favour of Mr Derkatch of
$28,435.89; and a costs order in favour of Ms Lyko of $24,107.00. I agree with
Associate Judge Blumberg that this leads to an offset sum payable by Ms Lyko of
$4,328.69.
38 I find that interest on that sum is $165.00 at today’s date.
Judgment
1. I find that the judgment sum in Mr Derkatch’s favour, after offsetting
the award of costs payable to Ms Lyko is $4,328.69.
2. I find that interest is payable by Ms Lyko as follows:
(i) on the primary judgment until 8 October 2025 at $11,704.83
(ii) on the offset sum from 8 October 2025 at $165.00
Total: $11,869.83
3. In addition the offset sum of $4,328.69 remains unpaid.
4. The total sum owing to Mr Derkatch by Ms Lyko is therefore
$16,198.52 (the judgment sum).
5. As a result of the significant delay in the parties addressing the issues
regarding the property and costs, I provide Ms Lyko with 90 days to
pay the judgment sum.
6. If the judgment sum is not paid by Ms Lyko within 90 days, these
proceedings are to be referred to the Registrar, or her delegate, to
undertake the enforcement procedures in Chapter 17 of the UCR in
relation to the sum of $16,198.52.
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