Telefonica UK Ltd v The Office of Communications [2020] EWCA Civ 1374 (29 October 2020)

Telefonica UK Ltd v The Office of Communications [2020] EWCA Civ 1374 (29 October 2020)

The judge erred in refusing to award enhanced interest by taking into account irrelevant considerations (the high percentage of the offer and proportionality), failing to exercise discretion as to the rate of interest, and thereby depriving the claimant of significant enhancement contrary to the purpose of CPR 36.17(4). Once the offers were found to be genuine attempts to settle, the normal consequences should follow unless injustice is shown, which was not established here.

Citation
[2020] EWCA Civ 1374
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 / Appeal From High Court Judgment on Costs and Interest Following Trial
Outcome
Appeal allowed
Legal Topics
Part 36 Offers, Costs Consequences, Enhanced Interest, Restitution of Licence Fees, Judicial Discretion
Civil Procedure Restitution Telecommunications Law Part 36 Offers Costs Consequences Enhanced Interest Restitution of Licence Fees Judicial Discretion

Case Brief

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Parties

TELEFÓNICA UK LIMITED

Claimant/appellant

THE OFFICE OF COMMUNICATIONS

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Costs and Interest Following Trial

Legal Issues

  1. 1 Whether the judge erred in refusing to award enhanced interest under CPR 36.17(4)(a) and (c) after the claimant obtained a judgment more advantageous than its Part 36 offer;
  2. 2 Whether the judge failed to exercise discretion as to the level of enhanced interest;
  3. 3 Whether the refusal to award enhanced interest was unjust in the circumstances.

Ratio Decidendi

The judge erred in refusing to award enhanced interest by taking into account irrelevant considerations (the high percentage of the offer and proportionality), failing to exercise discretion as to the rate of interest, and thereby depriving the claimant of significant enhancement contrary to the purpose of CPR 36.17(4). Once the offers were found to be genuine attempts to settle, the normal consequences should follow unless injustice is shown, which was not established here.

Court Disposition

Appeal allowed

Orders

  • Award of enhanced interest on both principal sum and costs at an additional 1.5% per annum (total 3.5% above base rate) from the relevant date.