Standard Chartered Bank v Ceylon Petroleum Corporation

Standard Chartered Bank v Ceylon Petroleum Corporation

Where a judgment is expressed in a foreign currency, the court has discretion under s.44A AJA 1970 to award post-judgment interest at a rate appropriate to that currency; in this case, US Prime Rate is suitable. For costs, a limited postponement of Judgments Act interest is justified due to large amounts and potential issues of proportionality and reasonableness.

Parties
Claimant: Standard Chartered Bank; Defendant: Ceylon Petroleum Corporation
Jurisdiction
England and Wales
Judgment Date
01 August 2011
Procedural Posture
Commercial Court Judgment / Post Judgment Interest Determination
Outcome
Post-judgment interest on the judgment sum to be awarded at US Prime Rate; Judgments Act interest on costs postponed for 4 months.
Legal Topics
Post Judgment Interest, Contractual Interest, Foreign Currency Judgments, Interest on Costs
Commercial Law Banking Law Post Judgment Interest Contractual Interest Foreign Currency Judgments Interest on Costs

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Parties

Standard Chartered Bank

Claimant

Ceylon Petroleum Corporation

Defendant

Procedural Posture

Commercial Court Judgment / Post Judgment Interest Determination

Legal Issues

  1. 1 Appropriate rate for post-judgment interest on a foreign currency judgment
  2. 2 Whether contractual interest provision overrides statutory interest
  3. 3 Whether Judgments Act rate on costs should be postponed

Ratio Decidendi

Where a judgment is expressed in a foreign currency, the court has discretion under s.44A AJA 1970 to award post-judgment interest at a rate appropriate to that currency; in this case, US Prime Rate is suitable. For costs, a limited postponement of Judgments Act interest is justified due to large amounts and potential issues of proportionality and reasonableness.

Court Disposition

Post-judgment interest on the judgment sum to be awarded at US Prime Rate; Judgments Act interest on costs postponed for 4 months.

Orders

  • Post-judgment interest on $166,476,281 to be calculated at US Prime Rate (3.25%)
  • Judgments Act interest on costs postponed for 4 months on disputed balance; payment on account accrues interest at Judgments Act rate