PHILLIP SMOUT v WULFRUN HOTELS LIMITED

PHILLIP SMOUT v WULFRUN HOTELS LIMITED

It was wrong in law to award interest on pain, suffering and loss of amenity at 6% based on the Defendant's conduct. The conventional 2% rate applies, and interest is compensatory, not punitive. The Recorder's order on interest and consequential Part 36 benefits was set aside and replaced with the conventional calculation. Indemnity costs were still appropriate from the date of abusive correspondence.

Parties
Respondent/claimant: Phillip Smout; Appellant/defendant: Wulfrun Hotels Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil Appeal Personal Injury / Appeal Judgment
Outcome
Appeal allowed in part; Recorder's order on interest and Part 36 benefits set aside; damages and interest recalculated; indemnity costs awarded from specified date; no order as to costs of the appeal.
Legal Topics
Personal Injury, Interest on Damages, Costs, Civil Procedure Rules, Defective Premises
Tort Law Civil Procedure Personal Injury Interest on Damages Costs Civil Procedure Rules Defective Premises

Case Brief

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Parties

Phillip Smout

Respondent/claimant

Wulfrun Hotels Limited

Appellant/defendant

Procedural Posture

Civil Appeal Personal Injury / Appeal Judgment

Legal Issues

  1. 1 Whether the Recorder erred in awarding interest on pain, suffering and loss of amenity at 6% per annum instead of the conventional 2% rate
  2. 2 Whether the Recorder was correct to award indemnity costs and additional liabilities under Part 36
  3. 3 Whether the abusive conduct of the Defendant justified an uplift in interest rate

Ratio Decidendi

It was wrong in law to award interest on pain, suffering and loss of amenity at 6% based on the Defendant's conduct. The conventional 2% rate applies, and interest is compensatory, not punitive. The Recorder's order on interest and consequential Part 36 benefits was set aside and replaced with the conventional calculation. Indemnity costs were still appropriate from the date of abusive correspondence.

Court Disposition

Appeal allowed in part; Recorder's order on interest and Part 36 benefits set aside; damages and interest recalculated; indemnity costs awarded from specified date; no order as to costs of the appeal.

Orders

  • Judgment for damages in the sum of £4,125 plus interest at 2% on general damages and full SIAR on past loss and expense, totaling £4,346.45.
  • Costs to the Claimant on the standard basis until 3rd February 2019 and on the indemnity basis from 4th February 2019 onwards.