Novus Aviation Ltd v Alubaf Arab International Bank BSC(C)

Novus Aviation Ltd v Alubaf Arab International Bank BSC(C)

The appropriate discount rate for damages is 2.5%, reflecting a commercial rate above the US government bond yield and a modest credit spread. Novus is entitled to damages for lost management fees and disposal fee, interest at 2.5%, and costs on the standard basis. Enhanced costs under Part 36 are not awarded due to...

Source-derived case information.

Parties
Claimant: Novus Aviation Limited; Defendant: Alubaf Arab International Bank BSC(c)
Jurisdiction
England and Wales
Judgment Date
27 July 2016
Procedural Posture
Commercial Claim / Post Trial Judgment on Consequential Issues
Outcome
Judgment for the claimant; stay of execution granted conditional on escrow payment; permission to appeal refused.
Legal Topics
Repudiatory Breach, Quantum of Damages, Discount Rate, Interest, Costs, Part 36 Offer, Stay of Execution
Contract Law Damages Civil Procedure Repudiatory Breach Quantum of Damages Discount Rate Interest Costs +2 more

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Parties

Novus Aviation Limited

Claimant

Alubaf Arab International Bank BSC(c)

Defendant

Procedural Posture

Commercial Claim / Post Trial Judgment on Consequential Issues

Legal Issues

  1. 1 Appropriate discount rate for damages calculation
  2. 2 Appropriate rate of interest
  3. 3 Entitlement to costs and enhanced costs under Part 36

Ratio Decidendi

The appropriate discount rate for damages is 2.5%, reflecting a commercial rate above the US government bond yield and a modest credit spread. Novus is entitled to damages for lost management fees and disposal fee, interest at 2.5%, and costs on the standard basis. Enhanced costs under Part 36 are not awarded due to exchange rate fluctuations being the sole reason the judgment exceeded the offer. Stay of execution is granted conditional on payment into escrow.

Court Disposition

Judgment for the claimant; stay of execution granted conditional on escrow payment; permission to appeal refused.

Orders

  • Alubaf to pay Novus US$5,430,924 (including interest)
  • Alubaf to pay Novus £250,000 on account of costs