Walter Lilly & Company Ltd v MacKay & Anor [2012] EWHC 1972 (TCC) (17 July 2012)

Walter Lilly & Company Ltd v MacKay & Anor [2012] EWHC 1972 (TCC) (17 July 2012)

The Claimant was entitled to contractual interest at Bank of England Base Rate plus 5% on sums wrongfully withheld, with discretionary interest awarded for periods not covered by the contract. The Defendants' conduct, including failure to engage with reasonable settlement offers and unreasonable litigation tactics, justified costs on a standard basis up to 11 November 2011 and on an indemnity basis thereafter. The Claimant was awarded an interim payment of £1.9 million towards costs. The Defendants' application for extended time to pay was refused due to inadequate evidence of inability to pay.

Citation
[2012] EWHC 1972 (TCC)
Parties
Claimant: Walter Lilly & Company Limited; Defendant: Giles Patrick Cyril Mackay; Defendant: DMW Developments Limited
Jurisdiction
England and Wales
Judgment Date
17 July 2012
Procedural Posture
Civil Construction Dispute / Post Trial Judgment on Interest, Costs, and Interim Payment
Outcome
Judgment for the Claimant on interest and costs; interim payment ordered; application for extended time to pay refused.
Legal Topics
Interest on Judgment Debts, Costs (standard and Indemnity Basis), Interim Payments, Offers to Settle (part 36), Contractual Remedies
Construction Law Contract Law Civil Procedure Interest on Judgment Debts Costs (standard and Indemnity Basis) Interim Payments Offers to Settle (part 36) Contractual Remedies

Case Brief

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Parties

Walter Lilly & Company Limited

Claimant

Giles Patrick Cyril Mackay

Defendant

DMW Developments Limited

Defendant

Procedural Posture

Civil Construction Dispute / Post Trial Judgment on Interest, Costs, and Interim Payment

Legal Issues

  1. 1 Entitlement to contractual and discretionary interest under the contract
  2. 2 Basis for awarding costs (standard or indemnity)
  3. 3 Appropriateness and quantum of interim payment of costs

Ratio Decidendi

The Claimant was entitled to contractual interest at Bank of England Base Rate plus 5% on sums wrongfully withheld, with discretionary interest awarded for periods not covered by the contract. The Defendants' conduct, including failure to engage with reasonable settlement offers and unreasonable litigation tactics, justified costs on a standard basis up to 11 November 2011 and on an indemnity basis thereafter. The Claimant was awarded an interim payment of £1.9 million towards costs. The Defendants' application for extended time to pay was refused due to inadequate evidence of inability to pay.

Court Disposition

Judgment for the Claimant on interest and costs; interim payment ordered; application for extended time to pay refused.

Orders

  • Defendants to pay contractual and discretionary interest totaling £593,779.
  • Defendants to pay Claimant's costs on a standard basis up to 11 November 2011 and on an indemnity basis thereafter.