Rolls-Royce Holdings Plc v Goodrich Corporation

Rolls-Royce Holdings Plc v Goodrich Corporation

No award of pre-judgment statutory interest is made because clause 44 of the contract provides an exclusive mechanism for interest recovery, requiring proof of loss which Goodrich has not attempted or proved; statutory interest under s.35A is precluded where contractual conditions are not satisfied.

Parties
Claimant: Rolls-Royce Holdings PLC; Defendant: Goodrich Corporation; Third Party: Rolls-Royce PLC; Fourth Party: Rolls-Royce Total Care Services Limited; Fifth Party: Rolls-Royce Corporation; Sixth Party: Rolls-Royce Defense Services Inc; Seventh Party: Rolls-Royce Deutschland Ltd & Co KG; Eighth Party: Rolls-Royce Brasil Limitada; Ninth Party: Rolls-Royce Canada Limited; Tenth Party: Rolls-Royce Controls and Data Services Ltd
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Commercial Claim / Post Judgment Consequential Hearing
Outcome
Application for pre-judgment statutory interest dismissed; permission to appeal granted.
Legal Topics
Pre Judgment Interest, Statutory Interest, Contractual Interest, Debt Recovery, Damages
Contract Law Commercial Law Pre Judgment Interest Statutory Interest Contractual Interest Debt Recovery Damages

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Parties

Rolls-Royce Holdings PLC

Claimant

Goodrich Corporation

Defendant

Rolls-Royce PLC

Third Party

Rolls-Royce Total Care Services Limited

Fourth Party

Rolls-Royce Corporation

Fifth Party

Rolls-Royce Defense Services Inc

Sixth Party

Rolls-Royce Deutschland Ltd & Co KG

Seventh Party

Rolls-Royce Brasil Limitada

Eighth Party

Rolls-Royce Canada Limited

Ninth Party

Rolls-Royce Controls and Data Services Ltd

Tenth Party

Procedural Posture

Commercial Claim / Post Judgment Consequential Hearing

Legal Issues

  1. 1 Whether Goodrich is entitled to pre-judgment interest on the awarded sum
  2. 2 Whether contractual clause 44 precludes statutory interest under s.35A Senior Courts Act 1981
  3. 3 Whether interest should be awarded for the period from 1 January 2018 to 28 February 2023

Ratio Decidendi

No award of pre-judgment statutory interest is made because clause 44 of the contract provides an exclusive mechanism for interest recovery, requiring proof of loss which Goodrich has not attempted or proved; statutory interest under s.35A is precluded where contractual conditions are not satisfied.

Court Disposition

Application for pre-judgment statutory interest dismissed; permission to appeal granted.

Orders

  • No award of pre-judgment statutory interest to Goodrich.
  • Post-judgment interest awarded at US Prime rate.