Ruttle Plant Hire Ltd v Secretary of State for Environment Food & Rural Affairs

Ruttle Plant Hire Ltd v Secretary of State for Environment Food & Rural Affairs

Incorrect invoices do not preclude the application of the Late Payment of Commercial Debts (Interest) Act 1998; statutory interest runs from 30 days after the purchaser receives notice of the amount claimed, subject to remission only if the supplier's conduct justifies it. The Judge erred in remitting or reducing interest without sufficient justification based on the supplier's conduct. The 1981 Act would apply from completion of the work if the 1998 Act did not, but the 1998 Act governs here.

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 Debts, Discretion to Remit Interest, Interpretation of Invoices, Implied Terms in Contracts
Contract Law Commercial Law Statutory Interest Late Payment of Debts Discretion to Remit Interest Interpretation of Invoices Implied Terms in Contracts

Case Brief

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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's conduct
  3. 3 Whether the 1981 Act applies if the 1998 Act does not

Ratio Decidendi

Incorrect invoices do not preclude the application of the Late Payment of Commercial Debts (Interest) Act 1998; statutory interest runs from 30 days after the purchaser receives notice of the amount claimed, subject to remission only if the supplier's conduct justifies it. The Judge erred in remitting or reducing interest without sufficient justification based on the supplier's conduct. The 1981 Act would apply from completion of the work if the 1998 Act did not, but the 1998 Act governs here.

Court Disposition

Appeal allowed

Orders

  • Statutory interest under the 1998 Act to run from 30 days after receipt of each relevant invoice, at the statutory rate (8% above base rate), except for underclaims and unbilled sums where interest runs from when first claimed.
  • No remission or reduction of statutory interest based on supplier's conduct in this case.