Nicholls & Anor v Mapfre Espana Compania de Seguros y Reaseguros SA [2023] EWHC 1031 (KB) (04 May 2023)

Nicholls & Anor v Mapfre Espana Compania de Seguros y Reaseguros SA [2023] EWHC 1031 (KB) (04 May 2023)

The High Court held that, as a matter of EU law under Rome II, the recovery of interest provided for by Article 20 of the Spanish Insurance Contract Act is a substantive right, not a procedural sanction. Therefore, in cross-border personal injury claims governed by Rome II, the English court must apply the Spanish...

Source-derived case information.

Citation
[2023] EWHC 1031 (KB)
Parties
Claimant/respondent: Jane Nicholls; Claimant/respondent: AXA Assistance Group t/a AXA Travel Insurance; Claimant/respondent: Sonia Woodward; Defendant/appellant: Mapfre Espana Compania de Seguros y Reaseguros SA
Jurisdiction
England and Wales
Judgment Date
04 May 2023
Procedural Posture
Appeal (conjoined Personal Injury Claims) / High Court (king's Bench Division) Appeal From County Court Decisions on Interest Awards
Outcome
Appeal dismissed. The awards of interest at Spanish rates are upheld.
Legal Topics
Conflict of Laws, Interest on Damages, Application of Foreign Law, Rome II Regulation, Procedural Vs Substantive Law
Private International Law Personal Injury Insurance Law Conflict of Laws Interest on Damages Application of Foreign Law Rome II Regulation Procedural Vs Substantive Law

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Parties

Jane Nicholls

Claimant/respondent

AXA Assistance Group t/a AXA Travel Insurance

Claimant/respondent

Sonia Woodward

Claimant/respondent

Mapfre Espana Compania de Seguros y Reaseguros SA

Defendant/appellant

Procedural Posture

Appeal (conjoined Personal Injury Claims) / High Court (king's Bench Division) Appeal From County Court Decisions on Interest Awards

Legal Issues

  1. 1 Whether the award of interest on damages in cross-border personal injury claims is governed by the lex fori (English procedural law) or the lex causae (Spanish substantive law) under Rome II Regulation.
  2. 2 Whether Article 20 of the Spanish Insurance Contract Act provides a substantive right to penalty interest or a procedural sanction.
  3. 3 Whether English courts have discretion to apply foreign (Spanish) interest rates under section 69 County Courts Act 1984.

Ratio Decidendi

The High Court held that, as a matter of EU law under Rome II, the recovery of interest provided for by Article 20 of the Spanish Insurance Contract Act is a substantive right, not a procedural sanction. Therefore, in cross-border personal injury claims governed by Rome II, the English court must apply the Spanish substantive law on interest, including the penalty rates, rather than exercising a purely procedural discretion under section 69 of the County Courts Act 1984. The judges below were correct to award interest at Spanish rates.

Court Disposition

Appeal dismissed. The awards of interest at Spanish rates are upheld.

Orders

  • Interest on damages to be awarded in accordance with Article 20 of the Spanish Insurance Contract Act, as part of the substantive law under Rome II.
  • No change to the damages or interest awarded by the County Courts.