Standard Chartered Bank v Ceylon Petroleum Corporation [2011] EWHC 2094 (Comm) (01 August 2011)

Standard Chartered Bank v Ceylon Petroleum Corporation [2011] EWHC 2094 (Comm) (01 August 2011)

For a US dollar judgment, the court should exercise its discretion under s.44A AJA 1970 to award post-judgment interest at the US Prime Rate, as it is appropriate for the currency and avoids the anomaly of applying the higher Judgments Act rate. For costs, a four-month postponement of Judgments Act interest is...

Source-derived case information.

Citation
[2011] EWHC 2094 (Comm)
Parties
Claimant: Standard Chartered Bank; Defendant: Ceylon Petroleum Corporation
Jurisdiction
England and Wales
Judgment Date
01 August 2011
Procedural Posture
Commercial Claim / Post Judgment Interest Determination
Outcome
Post-judgment interest on the principal sum to be awarded at the US Prime Rate; Judgments Act interest on costs postponed for four months except for the payment on account.
Legal Topics
Post Judgment Interest, Contractual Interest, Foreign Currency Judgments, Costs Assessment
Commercial Law Banking Law Civil Procedure Post Judgment Interest Contractual Interest Foreign Currency Judgments Costs Assessment

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Parties

Standard Chartered Bank

Claimant

Ceylon Petroleum Corporation

Defendant

Procedural Posture

Commercial Claim / Post Judgment Interest Determination

Legal Issues

  1. 1 Whether post-judgment interest on a US dollar judgment should be at the Judgments Act rate, US Prime Rate, or contractual rate
  2. 2 Whether Judgments Act interest on costs should be postponed

Ratio Decidendi

For a US dollar judgment, the court should exercise its discretion under s.44A AJA 1970 to award post-judgment interest at the US Prime Rate, as it is appropriate for the currency and avoids the anomaly of applying the higher Judgments Act rate. For costs, a four-month postponement of Judgments Act interest is justified due to the large sums and potential issues of proportionality and reasonableness on taxation.

Court Disposition

Post-judgment interest on the principal sum to be awarded at the US Prime Rate; Judgments Act interest on costs postponed for four months except for the payment on account.

Orders

  • Post-judgment interest on $166,476,281 at US Prime Rate (currently 3.25%)
  • Judgments Act interest on costs to be postponed for four months except for the payment on account, which accrues interest immediately