Citation: [2024] EWHC 3215 (TCC)
Facts
The claimant and defendant had previously been parties to a waste management contract. Following a dispute, the claimant had been awarded a principal sum of approximately £9 million, which was subsequently paid by the defendant. An additional sum of approximately £90,000 was also identified and paid by the defendant at a later date.
The present judgment concerned whether interest should be calculated from the date of judgment, or an earlier date specified by the claimant, and also whether the interest should be compound.
The claimant argued for interest from the end of each contract year, compounded at 2% above the Bank of England base rate, as per the agreement. The defendant accepted the prescribed rate but disputed the start date and the compounding of interest.
Decision
The Judge decided that the claimant was entitled to simple interest at the prescribed rate from the due date. The agreement did not provide for compound interest and the claimant was therefore not entitled to claim it.
The court rejected the defendant’s argument that interest should only accrue from the date of judgment because there was no contractual obligation before this point. The Judge found this submission misconceived, holding that the contract (particularly clauses 71.17 and 73) clearly provided for payment of the sums on the relevant due date.
Representation
Justin Mort KC (Keating Chambers) for the Claimant, instructed by Sharpe Pritchard LLP, London.
Fiona Parkin KC and Samar Abbas Kazmi (Atkin Chambers) for the Defendant, instructed by Pinsent Masons LLP, Manchester.
The judgment can be found here.
