Civil way: 26 May 2017

OF INTEREST

Generally, the Commercial Court has historically awarded pre-judgment interest at base rate plus 1%, looking at the rate at which the successful party could borrow commercially. But its guide tells us that these days, there is no presumption that this is the appropriate measure of a commercial rate of interest. In Kitcatt and others v MMS UK Holdings Ltd and another [2017] EWHC 786 (Comm) the claimants had collected a judgment for £2.6m. They ambitiously sought interest at base plus 5%, relying on Attrill v Dresdner Kleinwort Ltd [2012] EWHC 1468 (QB) where non-commercial claimants secured base plus 5% and Reinhard v Ondra LLP [2015] EWHC 2943 (Ch) in which base plus 3% was awarded. Males J gave them base plus 2%. The rates at which a commercial concern would be able to borrow were not available to the claimants as individuals. However, they were successful business people who might be able to achieve a better rate than some other individual