Telefonica UK Ltd v The Office of Communications

Telefonica UK Ltd v The Office of Communications

The judge erred by refusing enhanced interest based on disproportionality and the high level of offers, failing to exercise discretion as to the rate of uplift. Once the offers were found genuine, enhanced interest should have been awarded, with the rate set proportionately.

Parties
Claimant/appellant: Telefónica UK Limited; Defendant/respondent: The Office of Communications
Jurisdiction
England and Wales
Judgment Date
29 October 2020
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
CPR Part 36, Enhanced Interest, Indemnity Costs, Restitution of Licence Fees
Civil Procedure Restitution CPR Part 36 Enhanced Interest Indemnity Costs Restitution of Licence Fees

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Parties

Telefónica UK Limited

Claimant/appellant

The Office of Communications

Defendant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether it was unjust to refuse enhanced interest under CPR 36.17(4) when claimant beat its Part 36 offer
  2. 2 Appropriate exercise of discretion regarding enhanced relief under CPR 36.17(4)

Ratio Decidendi

The judge erred by refusing enhanced interest based on disproportionality and the high level of offers, failing to exercise discretion as to the rate of uplift. Once the offers were found genuine, enhanced interest should have been awarded, with the rate set proportionately.

Court Disposition

Appeal allowed

Orders

  • Claimant awarded enhanced interest at 1.5% per annum above base rate on principal and costs from the relevant date, making total interest 3.5% above base rate.
  • Indemnity costs and additional amount of £75,000 confirmed.