Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors [2019] EWHC 205 (TCC) (07 February 2019)

Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors [2019] EWHC 205 (TCC) (07 February 2019)

The claimants are entitled to statutory interest on the ML capped sums awarded, despite not pleading the claim for interest on the capped amount until after the draft judgment, because the omission was inadvertent, caused no prejudice to the defendant, and the legal principles governing interest do not require investigation of individual claimants' circumstances. The appropriate rate is 3.5% per annum, running from 7 August 2013 to 7 February 2019, reflecting a fair balance between borrowing and investment rates for claimants as a class.

Citation
[2019] EWHC 205 (TCC)
Parties
Claimants: Zagora Management Limited & Others; First Defendant: Zurich Insurance PLC; Second Defendant: Zurich Building Control Services Limited; Third Defendant: East West Insurance Company Limited
Jurisdiction
England and Wales
Judgment Date
07 February 2019
Procedural Posture
Civil (technology and Construction Court) / Supplemental Judgment on Interest Following Principal Judgment
Outcome
Claim for interest allowed
Legal Topics
Statutory Interest, Building Warranty, Damages, Civil Procedure Rules, Maximum Liability Provision
Insurance Law Civil Procedure Statutory Interest Building Warranty Damages Civil Procedure Rules Maximum Liability Provision

Case Brief

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Parties

Zagora Management Limited & Others

Claimants

Zurich Insurance PLC

First Defendant

Zurich Building Control Services Limited

Second Defendant

East West Insurance Company Limited

Third Defendant

Procedural Posture

Civil (technology and Construction Court) / Supplemental Judgment on Interest Following Principal Judgment

Legal Issues

  1. 1 Whether claimants are entitled to statutory interest on sums awarded under building warranties, despite not pleading specific interest claims until after draft judgment;
  2. 2 Whether procedural fairness or prejudice to the defendant precludes such an award;
  3. 3 Appropriate rate and period for interest if awarded.

Ratio Decidendi

The claimants are entitled to statutory interest on the ML capped sums awarded, despite not pleading the claim for interest on the capped amount until after the draft judgment, because the omission was inadvertent, caused no prejudice to the defendant, and the legal principles governing interest do not require investigation of individual claimants' circumstances. The appropriate rate is 3.5% per annum, running from 7 August 2013 to 7 February 2019, reflecting a fair balance between borrowing and investment rates for claimants as a class.

Court Disposition

Claim for interest allowed

Orders

  • Claimants awarded statutory interest at 3.5% per annum on the ML capped sum of £3,634,074.65 from 7 August 2013 to 7 February 2019, amounting to £699,559.30.