Walter Lilly & Company Ltd v MacKay & Anor

Walter Lilly & Company Ltd v MacKay & Anor

WLC is entitled to contractual interest at Bank of England Base Rate plus 5% on sums due, with discretionary interest awarded where contractual interest was not pleaded or available. WLC is awarded its costs on a standard basis up to 11 November 2011 and on an indemnity basis thereafter due to the Defendants' unreasonable conduct, including failure to accept reasonable settlement offers and pursuit of unsustainable claims. An interim payment of £1.9 million in costs is ordered. The Defendants' application for time to pay is refused due to inadequate evidence.

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/contract) / Post Trial Judgment on Interest, Costs, and Interim Payment
Outcome
Judgment for the Claimant (WLC) on interest, costs, and interim payment; Defendants' application for time to pay refused.
Legal Topics
Interest on Judgment Debts, Costs (standard and Indemnity Basis), Interim Payments, Settlement Offers, Conduct of Litigation
Construction Law Contract Law Civil Procedure Interest on Judgment Debts Costs (standard and Indemnity Basis) Interim Payments Settlement Offers Conduct of Litigation

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/contract) / Post Trial Judgment on Interest, Costs, and Interim Payment

Legal Issues

  1. 1 Entitlement to contractual and discretionary interest under the contract and at common law
  2. 2 Basis for awarding costs on standard or indemnity basis
  3. 3 Appropriateness and quantum of interim payment of costs

Ratio Decidendi

WLC is entitled to contractual interest at Bank of England Base Rate plus 5% on sums due, with discretionary interest awarded where contractual interest was not pleaded or available. WLC is awarded its costs on a standard basis up to 11 November 2011 and on an indemnity basis thereafter due to the Defendants' unreasonable conduct, including failure to accept reasonable settlement offers and pursuit of unsustainable claims. An interim payment of £1.9 million in costs is ordered. The Defendants' application for time to pay is refused due to inadequate evidence.

Court Disposition

Judgment for the Claimant (WLC) on interest, costs, and interim payment; Defendants' application for time to pay refused.

Orders

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