OMV Petrom SA v Glencore International AG
The judge's discretion was exercised on the wrong basis by treating the award of enhanced interest as purely compensatory; the correct approach is to award the maximum 10% uplift in cases of unreasonable conduct to incentivise settlement and mark disapproval, considering all circumstances.
- Parties
- Claimant/appellant: OMV Petrom SA; Defendant/respondent: Glencore International AG
- Jurisdiction
- England and Wales
- Judgment Date
- 27 March 2017
- Procedural Posture
- Civil Appeal / Judgment on Appeal From High Court
- Outcome
- Appeal allowed
- Legal Topics
- Interest Awards, Costs Consequences, CPR Part 36, Litigation Conduct, Settlement Incentives
Case Brief
Summary, issues, holding and outcome
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Parties
OMV Petrom SA
Claimant/appellant
Glencore International AG
Defendant/respondent
Procedural Posture
Civil Appeal / Judgment on Appeal From High Court
Legal Issues
- 1 Appropriate rate of enhanced interest under CPR Part 36.14(3)(a) and (c)
- 2 Whether enhanced interest is compensatory or penal
- 3 Court's discretion in awarding enhanced interest and costs
Ratio Decidendi
The judge's discretion was exercised on the wrong basis by treating the award of enhanced interest as purely compensatory; the correct approach is to award the maximum 10% uplift in cases of unreasonable conduct to incentivise settlement and mark disapproval, considering all circumstances.
Court Disposition
Appeal allowed
Orders
- Enhanced interest on both the award and costs for the period from expiry of the Part 36 offer until judgment at 10% over base rate.
- Original rates ordered by the judge replaced with maximum uplift.
Full Case Text
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