PART 36: WHAT FACTORS ARE CONSIDERED AS TO INCREASED INTEREST WHEN A CLAIMANT BEATS ITS OWN OFFER? THE ISSUE CONSIDERED IN THE HIGH COURT
When a claimant beats their own Part 36 offer they are entitled to additional interest on damages from the “relevant period” (the date of expiry of the offer. Here we have a case where the factors that effect the rate…
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 ON DAMAGES AND COSTS THAT HAVE TO BE REPAID FOLLOWING AN APPEAL: WHAT IS THE APPROPRIATE RATE?
Losing a case on appeal is always painful. Having to repay the damages and costs that have been received is more painful still. Another element of pain is the fact that the losing party has to pay interest on the…
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…
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…
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…
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…
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…
INTEREST ON DAMAGES AFTER FAILING TO BEAT A CLAIMANT’S PART 36 OFFER: THE AIM IS TO ENCOURAGE GOOD PRACTICE AND NOT SIMPLY TO COMPENSATE
In Ovm Petrom SA -v- Glencore International SA [2017] EWCA Civ 195 the Court of Appeal overturned a decision not to award 10% interest on damages in a case where a defendant failed to beat a claimant’s Part 36 offer….
COMPOUND INTEREST OR SIMPLE INTEREST? COUNTING THE COPPERS: CLAIMANT’S ARGUMENT MISSES THE NET
In Ipswich Town Football Club Company Limited -v- The Chief Constable of Suffolk Constabulary [2017] EWHC 375 (QB) Mr Justice Green considered the question of whether a claimant was entitled to compound interest or simple interest. The judge gave that particular…
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…
INTEREST WHERE THE CLAIM WAS OVER A PROLONGED PERIOD:JUDGMENT ACT RATE NO LONGER APPROPRIATE
There were many procedural issues in the Court of Appeal decision in Oyesanya -v- Mid-Yorkshire Hospital Trust [2015] EWCA Civ 1049. Some of them will be looked at in later posts. Here we look at the appropriate approach of the…
SETTING OFF INTEREST AGAINST AN INTERIM PAYMENT: A HIGH COURT DECISION
The judgment of Mrs Justice Cox in Manna -v- Central Manchester University Hospitals NHS Foundation Trust [2015] EWHC 2279 (QB) is a veritable goldmine for anyone who writes about civil procedure or personal injury damages. One of the, many, issues…
INCREASED INTEREST AND COSTS AFTER CLAIMANT BEATS ITS OWN PART 36 OFFER: JUDGMENT FOR THREE TIMES MORE THAN CLAIMANT'S OFFER
In Thai Airways International Public Company Ltd -v- KI Holdings Co Ltd [2015] EWHC 1476 (Comm) Mr Justice Leggat made slight modifications to the additional amounts to be awarded to a claimant which had beaten its own part 36 offer….
EVIDENCE: PROVING DAMAGES AND INTEREST ON DAMAGES: YOU CAN'T SUGAR THE PILL AND HAVE TO PROVE THE LOSS
The final paragraphs of the judgment of Mr Justice Eder in Sugar Hut Group -v- AJ Insurance [2014] EWHC 3352 (Comm) has some important lessons on the need to adduce evidence to prove losses. It also contains a discussion of…
PART 36 OFFERS AND NON-MONETARY CLAIMS: A HIGH COURT CASE CONSIDERED
We have looked before at the advantages to a claimant in making an early Part offer. If the claimant matches or beats that offer at trial then there are advantages in costs and interests. There can also be a 10%…
NO INTEREST AWARDED ON PRE-JUDGMENT COSTS FOR SUCCESSFUL DEFENDANT
Should a successful party have an award of interest on costs paid to their solicitors. In the case of Schuman -v- Veale Wasborough [2013] EWHC 4070 (QB) Dingemans J considered an application by successful defendants that they be awarded interest on their…
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