Jane Nicholls & Anor v Mapfre Espana Compania de Seguros y Reaseguros SA

Jane Nicholls & Anor v Mapfre Espana Compania de Seguros y Reaseguros SA

The right to interest under Spanish law is a substantive right closely associated with the right to damages and, as such, must be applied as part of the lex causae under Rome II, not as a matter of English procedural discretion. The judges below were correct to award interest at Spanish rates, but their reasoning was wrong in treating it as a discretionary procedural matter rather than a substantive right.

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
11 September 2024
Procedural Posture
Civil Appeal (conjoined) / Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Interest on Damages, Substance Vs Procedure, Rome II Regulation, Application of Foreign Law, Discretion in Awarding Interest
Private International Law Insurance Law Civil Procedure Interest on Damages Substance Vs Procedure Rome II Regulation Application of Foreign Law Discretion in Awarding Interest

Case Brief

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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

Civil Appeal (conjoined) / Appeal Judgment

Legal Issues

  1. 1 Whether the award of interest under Spanish law is a substantive or procedural matter under Rome II Regulation
  2. 2 Whether English courts can or should apply Spanish penalty interest rates as part of damages or only as a matter of discretion under English procedural law
  3. 3 Whether the judges below erred in awarding interest at Spanish rates

Ratio Decidendi

The right to interest under Spanish law is a substantive right closely associated with the right to damages and, as such, must be applied as part of the lex causae under Rome II, not as a matter of English procedural discretion. The judges below were correct to award interest at Spanish rates, but their reasoning was wrong in treating it as a discretionary procedural matter rather than a substantive right.

Court Disposition

Appeal dismissed

Orders

  • Awards of interest at Spanish rates upheld as substantive rights under Rome II
  • No interference with the quantum of damages or interest awarded below