Lonestar Communications Corporation LLC v Kaye & Ors [2023] EWHC 732 (Comm) (30 March 2023)

Lonestar Communications Corporation LLC v Kaye & Ors [2023] EWHC 732 (Comm) (30 March 2023)

The default interest rate for US dollar awards in the Commercial Court is US Prime, with no uplift unless justified by evidence or claimant characteristics. Lonestar is entitled to 40% of its costs up to the WPSATC offer, reflecting its limited success and speculative claim, and must pay Orange Liberia's costs from the date of the offer. Defendants are jointly and severally liable for common costs in specified proportions. The WPSATC offer is relevant to costs allocation, but does not justify reduction of interest or indemnity costs.

Citation
[2023] EWHC 732 (Comm)
Parties
Claimant: Lonestar Communications Corporation LLC; Defendant: Daniel Kaye; Defendant: Avishai Marziano; Defendant: Cellcom Telecommunications Limited; Defendant: Ran Polani; Defendant: Orange Liberia, Inc
Jurisdiction
England and Wales
Judgment Date
30 March 2023
Procedural Posture
Commercial Court Claim / Post Trial Consequential Judgment on Interest and Costs
Outcome
Interest awarded at US Prime with no uplift; Lonestar awarded 40% of its costs up to 5 December 2021; Orange Liberia awarded its costs from 6 December 2021; Defendants jointly and severally liable for common costs in specified proportions; all costs to be assessed on a standard basis.
Legal Topics
Interest on Judgment Debts, Costs Orders, Without Prejudice Offers, Contribution Between Defendants
Commercial Law Civil Procedure Interest on Judgment Debts Costs Orders Without Prejudice Offers Contribution Between Defendants

Case Brief

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Parties

Lonestar Communications Corporation LLC

Claimant

Daniel Kaye

Defendant

Avishai Marziano

Defendant

Cellcom Telecommunications Limited

Defendant

Ran Polani

Defendant

Orange Liberia, Inc

Defendant

Procedural Posture

Commercial Court Claim / Post Trial Consequential Judgment on Interest and Costs

Legal Issues

  1. 1 Appropriate interest rate for US dollar awards
  2. 2 Whether uplift above US Prime rate is justified
  3. 3 Allocation and reduction of costs between parties

Ratio Decidendi

The default interest rate for US dollar awards in the Commercial Court is US Prime, with no uplift unless justified by evidence or claimant characteristics. Lonestar is entitled to 40% of its costs up to the WPSATC offer, reflecting its limited success and speculative claim, and must pay Orange Liberia's costs from the date of the offer. Defendants are jointly and severally liable for common costs in specified proportions. The WPSATC offer is relevant to costs allocation, but does not justify reduction of interest or indemnity costs.

Court Disposition

Interest awarded at US Prime with no uplift; Lonestar awarded 40% of its costs up to 5 December 2021; Orange Liberia awarded its costs from 6 December 2021; Defendants jointly and severally liable for common costs in specified proportions; all costs to be assessed on a standard basis.

Orders

  • Interest on judgment sum at US Prime rate, no uplift.
  • Lonestar to recover 40% of its costs against Orange Liberia up to 5 December 2021.