I - Interest
14/3/24
DEUTSCHE BANK AG v SEBASTIAN HOLDINGS INC [2024] EWCA Civ 245
Considers the meaning of the words “arrears of interest” in s.24(2) Limitation Act 1980. Summarises principles of statutory interpretation [11] and considers the meaning of the word “due” [13] and “arrears” [18]. Considers the policy behind the Limitation Act [44]. Concludes that in s.24(2) (which applies a 6 year limitation period to recover arrears of interest on a judgment from the date on which the interest became due), “due” means payable. Time does not, therefore, start running for recovery of interest on an award of costs until the costs have been assessed so the interest is payable. The judge below had been wrong to hold that time starts running when a costs order is made.
10/6/20
SCHOOL FACILITY MANAGEMENT LTD v GOVERNING BODY OF CHRIST THE KING COLLEGE [2020] EWHC 1477
Considers counter-restitution in unjust enrichment claims [9]. Also considers principles to be applied on an application for a stay of execution pending appeal. On the facts a stay was justified but the court refused to delay the running of interest under the Judgments Act [34].
26/7/18
CMOC SALES & MARKETING LTD v PERSONS UNKNOWN [2018] EWHC 2230 (Comm)
Considers the proof required in fraud claims where the defendants do not engage in the litigation process or appear at trial and service has been effected by alternative means including by Facebook Messenger and WhatsApp. A thief of stolen funds is to be treated as a fiduciary holding the funds on constructive trust [76]. Summarises requirements for claims of dishonest assistance [89] and unlawful means conspiracy [92]. Knowledge required to establish dishonest assistance and conspiracy does not require it to be shown that the defendant intended to injure an identified victim. It is sufficient if the defendant knows that there is a victim [117]. Also summarises requirements for claims of knowing receipt [128] and unjust enrichment [140]. Where there are direct and indirect recipients, there is only one true recipient for the purpose of an unjust enrichment claim and the claimant can elect which to pursue. Compound interest is available for proprietary claims and knowing receipt but not for dishonest assistance. Costs incurred in pursuing orders from courts abroad can be claimed as damages [172].
4/7/14
NOVOSHIP (UK) LTD v NIKITIN [2014] EWCA Civ 908
If an agent or employee receives a bribe which he then shares with another, he is in breach of his fiduciary duty in then negotiating other transactions with that other person for as long as he has not disclosed the matter to his principal [54]. A defendant found to have dishonestly assisted another’s breach of fiduciary duty in this way has the same responsibilities as an express trustee and can be ordered to provide an account of profits [92]. That is so even if the dishonest assistance does not involve the misapplication of trust property [93]. Although causation of loss is not required to be established when seeking an account of profits for breach of fiduciary duty, causation is required in a claim for an account of profits from a dishonest assistant who is not himself a fiduciary [107]. This requires more than “but for” causation [108]. Although the defendant had obtained the use of certain vessels by such dishonest assistance, the effective cause of his profit had been an unexpected change in the market [115], so causation was not made out in this respect. In addition, the remedy of an account against a dishonest assistant who is not a fiduciary is discretionary [119] and it would be disproportionate in relation to the defendant’s use of the vessels. The judge had been entitled to award interest on the judgment (expressed in US$) at 2.5% over 3 month $ LIBOR.
12/6/14
MARTRADE SHIPPING & TRANSPORT GMBH v UNITED ENTERPRISES CORPORATION [2014] EWHC 1884 (Comm), [2015] 1 WLR 1
But for a choice of law clause, a contract would not have been governed by English Law. In those circumstances there was no right to interest under s 12 of the Late Payment of Commercial Debts (Interest) Act 1998.
28/3/14
LITTLEWOODS RETAIL LTD v REVENUE & CUSTOMS COMMISSIONERS [2014] EWHC 868 (Ch)
In a claim for an indemnity for overpaid VAT, the court considered the application of the principles of issue estoppel, the extent to which companies in the same group are to be regarded as privies [214], contractual estoppel [229], and abuse of process [243]. The court held that the loss of use of the overpaid tax should be compensated by an award of compound interest.
27/3/14
WEST v IAN FINLAY & ASSOCIATES [2014] EWCA Civ 316
Considers the application of the Unfair Terms in Consumer Contracts Regs 1999 to an exclusion clause in a construction contract effectively limiting a contractor’s liability for loss for which it was responsible with others to the level of contribution which would be payable under the Civil Liability (Contribution) Act 1978 (regardless of the insolvency of the others who were liable). On the facts the clause was fair. It also satisfied the requirement of reasonableness in the Unfair Contract Terms Act 1977. The court also considered the correct approach to the award of interest [75] and the level of awards of damages for distress and inconvenience [84]. On the facts interest at 4.5% pa over base was appropriate and damages for distress were reduced to reflect the guidance in AXA Insurance UK Plc v Cunningham Lindsay UK (2007).
17/1/14
It was announced that ICE Benchmark Administration (IBA) will officially take over as the new administrator of the London Interbank Offered Rate (LIBOR) from 1/2/14.
11/10/13
The Late Payment of Commercial Debts (Interest) Act 1998 applies to claims in debt, not damages but a debt arises on a claim for damages for breach of contract when judgment is given.
19/4/13
JSC BTA BANK v ABLYAZOV [2013] EWHC 867 (Comm)
The claimant was entitled to simple interest on a judgment at the rate at which it could have borrowed money in the relevant period (on the evidence 7.3%). Compound interest was not appropriate because the claimant had not pleaded and proved how it would have used the money if it had been available to it.
8/3/13
A USER’S GUIDE TO THE LATE PAYMENT DIRECTIVE
Explains how to calculate interest on late payments under the Late Payment of Commercial Debts regulations (SI 2013/395) in force from 16 March 2013.
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