PAYING BACK DAMAGES AND COSTS AFTER A SUCCESSFUL APPEAL: WHAT IS THE APPROPRIATE RATE OF INTEREST?
It is extremely painful, when a party has won at trial, to have to pay damages back after a successful appeal. The lawyers find it equally painful to have to repay costs. To rub salt into the wounds the successful…
Interest rate reductions on the Court Funds Office special and basic accounts: 30 May 2025
The Ministry of Justice announced on the 30th May 2025 that there is to be a reduction in the interest rates paid on funds in the Court Funds Office. Photo by micheile henderson on Unsplash THE ANNOUNCEMENT The announcement can be found here. “In…
COST BITES 141: INTEREST ON COSTS: PREJUDGMENT INTEREST ALLOWED; POST JUDGMENT INTEREST DEFERRED FOR A PERIOD
In Asturion Foundation v Alibrahim [2024] EWHC 757 (Ch) Mr Justice Adam Johnson made two decisions in relation to interest on costs. He awarded pre-judgment interest on costs at 2% above base rate (it was calculated that the interest amounted…
AN INTERESTING ISSUE: CLAIMANT WHO FAILS TO PLEAD CONTRACTUAL INTEREST – DOESN’T GET INTEREST AT ALL
The judgment of Mr Justice Foxton in Rolls-Royce Holdings Plc v Goodrich Corporation [2023] EWHC 2002 (Comm) illustrates an important issue in relation to interest. If a successful party has a contractual right to interest, but has not pleaded that…
WHAT HAPPENS TO INTEREST WHEN A DEFENDANT ACCEPTS A CLAIMANT’S PART 36 OFFER LATE? HIGH COURT DECISION
In MGS v University Hospitals Bristol and Weston NHS Foundation Trust [2023] EWHC 1547 (KB) Dexter Dias (sitting as a Deputy High Court Judge) rejected an argument that interest should run at 8% following the defendant’s late acceptance of the claimant’s…
INFLATION TO BE TAKEN INTO ACCOUNT IN ASSESSING DAMAGES USING THE JUDICIAL COLLEGE GUIDELINES
In Blair v Jaber [2023] EW Misc 3 (CC) Recorder Jack considered the issue of whether the court should take into account inflation when looking at the Judicial College Guidelines. The Recorder held that it should. …
INTEREST ON DAMAGES FOR PERSONAL INJURY CANNOT BE USED AS A MEANS OF PENALISING A DEFENDANT FOR POOR BEHAVIOUR: PART 36 ISSUES ALSO CONSIDERED
The judgment of Mr Justice Ritchie in Smout v Wulfrun Hotels Ltd [2023] EWHC 1128 (KB) considers the question of the use of interest as a penalty for the poor conduct of a defendant. The judge held that interest should…
COST BITES 41: PREJUDGMENT INTEREST ON COSTS – CONSIDERED BUT REFUSED
In Adcock & Ors v Blemain Finance Ltd [2022] EWHC 3280 (SCCO) Costs Judge Whalan considered, and rejected, the claimants’ arguments that they should have pre-judgment interest on costs. “It is clear nonetheless that the incipitur rule constitutes the…
COST BITES 11: INTEREST ON COSTS: JUDGE FINDS IT APPROPRIATE TO BACKDATE INTEREST
In Vitol SA v Genser Energy Ghana Ltd [2022] EWHC 1955 (Comm) Ms Lesley Anderson QC (sitting as a Deputy High Court Judge) considered whether interest should be payable on costs from a date before judgment. She held that interest…
INTEREST ON COSTS: WHAT IS THE APPROPRIATE RATE TO BE PAID IN A CLAIM RELATING TO AN ESTATE
In Almond v Goff & Ors [2021] EWHC 1703 (Ch) Ms Clare Ambrose, sitting as a High Court judge, considered the appropriate rate of interest on costs in a claim concerning an estate. She rejected the argument that interest ran…
PART 36: OFFERS MUST BE CONSIDERED EVEN THOUGH ALL THE PIECES OF THE JIGSAW ARE NOT IN PLACE: CONSEQUENCES ARE IMPOSED ON THE ACTUAL AMOUNT AWARDED NOT THE SUM THAT THE MAKER WOULD HAVE SETTLED FOR
I am grateful to Professor Dominic Regan for drawing my attention to the judgment of Mr Justice Kerr today in Equitix Eeef Biomass 2 Ltd v Fox & Ors [2021] EWHC 2781 (TCC). The judge rejected the notion that the…
AN INTERESTING CASE IN THE COURT OF APPEAL: NO INTEREST AWARDED ON DAMAGES FOR MALICIOUS PROSECUTION AND FALSE IMPRISONMENT
In Rees v Commissioner of Police of the Metropolis [2021] EWCA Civ 49 the Court of Appeal upheld a decision not to award interest on damages for damages for malicious prosecution and misfeasance in public office. THE CASE The claimant…
NO INTEREST ON COSTS OF LOAN IN A PERSONAL INJURY CASE: THERE IS A POWER BUT THE COURT DID NOT EXERCISE ITS DISCRETION
I am grateful to Paul Wainwright for sending me a copy of the judgment of District Judge Baldwin in Godfrey -v- Automotive Products Limited (17th December 2020). This decision, by the regional costs judge, considers whether a claimant in a…
COSTS ISSUES IN A CASE WHERE THE CLAIMANTS HAVE TO PAY £30 MILLION: WHY IT IS UNWISE TO BANK ON WINNING
A reminder of the sheer size, and major dangers, of group litigation can be seen in the judgment today in Sharp & Ors v Blank & Ors [2020] EWHC 1870 (Ch). The judgment relates to the costs of the action…
WHEN SHOULD INTEREST ON COSTS RUN FROM? A DECISION THAT DOESN’T GO ALL AROUND THE GARDEN…
We looked at the decision of Senior Costs Judge Gordon-Saker in Marbrow v Sharpes Garden Services Ltd [2020] EWHC B26 (Costs) last week in relation to the question of whether the costs budgeting caps were inclusive or exclusive of VAT. There…
CHANGE TO THE SPECIAL ACCOUNT RATE: DOWN TO 0.1%: PRACTICAL IMPLICATIONS
This morning the Ministry of Justice announced a reduction of interest rates for the Courts Funds special and basic accounts, effective from today (1st June 2020). THE ANNOUNCEMENT “Due to the impact of Covid-19, the Bank England reduced the base…
CORRECT INTEREST RATE ON COSTS WHEN CLAIMANT BEATS THEIR OWN PART 36 OFFER: TRIAL JUDGE WAS ENTITLED TO AWARD 10% OVER BASE
There are several interesting aspects of the judgment of Mr Justice Saini in Essex County Council & Ors v Davies & Ors [2019] EWHC 3443. Here I want to look at the part of the judgment that deals with the…
PART 36: WHEN A CLAIMANT BEATS THEIR OWN PART 36 OFFER: NO INTEREST ON THE ADDITIONAL £75,000
In FZO v Adams & Anor [2019] EWHC 1286 (QB) Mrs Justice Cutts considered the issue of whether interest was payable on the additional sums that a defendant pays when a claimant beats their own Part 36 offer. THE CASE…
SETTING ASIDE A DEFAULT JUDGMENT IN RELATION TO SOLICITORS’ COSTS: INTEREST SET ASIDE, PRINCIPAL SUM REMAINS A DEBT
In RS v LS & LMP [2018] EWHC 449 (Fam) Mrs Justice Roberts considered an application to set aside a default judgment obtained in relation to a solicitor’s costs. There are issues in relation to a failure to serve the response…
STATUTORY INTEREST: THE AIM IS TO COMPENSATE NOT TO PUNISH
In Carrasco v Johnson [2018] EWCA Civ 87 the Court of Appeal considered the appropriate rate for statutory interest. It reiterates important principles in relation to the court’s discretion in deciding the appropriate rate for the award of interest. “… interest…
CLAIMANT BEATS HIS OWN PART 36 OFFER: INTERESTS, COSTS AND HOW THE ADDITIONAL 10% IS CALCULATED
In Mohammed v The Home Office [2017] EWHC 3051 (QB) Mr Edward Peperall QC (sitting as a Deputy High Court Judge) considered the appropriate award for interest and additional damages when a claimant had beaten their own Part 36 offer. …
DAMAGES, COSTS AND MEDIATION: COURT OF APPEAL CONSIDERS THE BOUNDARIES
In the judgment today Gore -v- Naheed [2017] EWCA 369 the Court of Appeal considered the issue of damages being awarded (when they had not been claimed) and where costs should lie when a party – reasonably – declined to…
INTEREST ON DAMAGES AT 8% (AND THE DEFENDANT’S CONDUCT MATTERS): COURT OF APPEAL DECISION CONSIDERED
In Perry -v- Raleys Solicitors [2017] EWCA Civ 314 the Court of Appeal decided that the appropriate rate for interest on damages was 8% from the date of breach. It is not often that questions of interest on damages are…
INTEREST ON AWARD NOT AUTOMATIC: A DECISION WHERE NO INTEREST WAS AWARDED
The question of when, and whether, interest should be awarded is one of these issues in litigation that receives little coverage. In Pinfold -v- Ansell [2017] EWHC 889 (Ch) HHJ David Cooke decided not to award interest at all. It…
PART 36: ADDITIONAL AMOUNTS AND INTEREST
In Bolt Burdon -v- Tariq [2016] EWHC 1507 (QB) Mr Justice Spencer considered the appropriate approach to additional liabilities where a claimant beats its own Part 36 offer and interest was awarded on a contractual basis. However the judgment appears…
SUCCESSFUL PART 36 OFFER BY CLAIMANT ATTRACTS INDEMNITY COSTS ONLY FROM THE DATE OF EXPIRY OF THE OFFER: A HIGH COURT CASE
In RXDX -v- Northampton Borough Council [2015] EWHC 2938 (QB) Sir Colin Mackay revised an order in relation to indemnity costs following a Part 36 offer. THE CASE On the 12th March 2015 the claimant offered to settle the issue…
INDEMNITY COSTS AND REDUCED INTEREST ON DAMAGES BECAUSE OF DELAY: COURTS WILL STAY ON THE RAILS
There is a short interesting judgment by Mr Justice Akenhead in Network Rail Infrastructure Ltd -v- Handy [2015] EWHC 1460 (TCC) which deals with the principles relating to indemnity costs and interest. A further interesting point is that the claimant…
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