Ruttle Plant Hire Ltd v Secretary of State for Environment Food & Rural Affairs [2009] EWCA Civ 97 (27 February 2009)

Ruttle Plant Hire Ltd v Secretary of State for Environment Food & Rural Affairs [2009] EWCA Civ 97 (27 February 2009)

Incorrect invoices do not preclude the application of the 1998 Act; statutory interest runs from 30 days after notice of the amount claimed, and remission of interest is only justified by clearly identified supplier conduct causing uncertainty or delay. The judge erred in remitting or reducing interest without sufficient findings of such conduct.

Citation
[2009] EWCA Civ 97
Parties
Claimant/appellant: Ruttle Plant Hire Limited; Defendant/respondent: Secretary of State for Environment Food & Rural Affairs
Jurisdiction
England and Wales
Judgment Date
27 February 2009
Procedural Posture
Civil Appeal / Appeal From High Court (technology & Construction Court) to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Statutory Interest, Late Payment of Commercial Debts, Construction of Statutes, Exercise of Judicial Discretion, Implied Contractual Terms
Contract Law Commercial Law Statutory Interest Late Payment of Commercial Debts Construction of Statutes Exercise of Judicial Discretion Implied Contractual Terms

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Parties

Ruttle Plant Hire Limited

Claimant/appellant

Secretary of State for Environment Food & Rural Affairs

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (technology & Construction Court) to Court of Appeal

Legal Issues

  1. 1 Whether incorrect invoices preclude application of the Late Payment of Commercial Debts (Interest) Act 1998
  2. 2 Whether statutory interest should be remitted due to supplier conduct
  3. 3 Whether the 1998 Act or Supreme Court Act 1981 applies to interest claims on disputed invoices

Ratio Decidendi

Incorrect invoices do not preclude the application of the 1998 Act; statutory interest runs from 30 days after notice of the amount claimed, and remission of interest is only justified by clearly identified supplier conduct causing uncertainty or delay. The judge erred in remitting or reducing interest without sufficient findings of such conduct.

Court Disposition

Appeal allowed

Orders

  • Statutory interest under the 1998 Act to run from 30 days after each relevant invoice, at the statutory rate, without remission except for underclaims and unclaimed sums as agreed.
  • Parties invited to agree consequential order, with liberty to restore if not agreed.