Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors

Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors

The claimants are entitled to statutory interest on the ML capped sum awarded under the building warranties, despite procedural failures to plead or argue the claim earlier, because no prejudice was caused 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, as this reflects a fair balance between borrowing and investment rates for claimants as a class.

Parties
Claimant: 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 (insurance/construction) / Supplemental Judgment on Interest Following Principal Judgment
Outcome
Claim for interest allowed
Legal Topics
Statutory Interest, Building Warranties, Damages, Maximum Liability Cap, Procedural Fairness
Insurance Law Construction Law Civil Procedure Statutory Interest Building Warranties Damages Maximum Liability Cap Procedural Fairness

Case Brief

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Parties

Zagora Management Limited & Others

Claimant

Zurich Insurance PLC

First Defendant

Zurich Building Control Services Limited

Second Defendant

East West Insurance Company Limited

Third Defendant

Procedural Posture

Civil (insurance/construction) / Supplemental Judgment on Interest Following Principal Judgment

Legal Issues

  1. 1 Whether claimants are entitled to statutory interest on sums awarded under building warranties
  2. 2 Whether procedural failures bar the claim for interest
  3. 3 Appropriate rate and period for interest

Ratio Decidendi

The claimants are entitled to statutory interest on the ML capped sum awarded under the building warranties, despite procedural failures to plead or argue the claim earlier, because no prejudice was caused 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, as this reflects a fair balance between borrowing and investment rates for claimants as a class.

Court Disposition

Claim for interest allowed

Orders

  • Claimants awarded interest at 3.5% per annum on £3,634,074.65 from 7 August 2013 to 7 February 2019
  • Total interest awarded: £699,559.30