Assetco Plc v Grant Thornton UK LLP

Assetco Plc v Grant Thornton UK LLP

The appropriate compensatory interest rate is three month LIBOR plus 2%, reflecting commercial borrowing rates for entities similar to AssetCo. Enhanced interest is set at 5% above LIBOR, balancing the Part 36 regime's purpose and the litigation's conduct, but not reaching the maximum uplift due to absence of egregious conduct. Interest on costs is compensatory only. A stay of execution is granted, but only on terms that the judgment sum is paid into court with 8% interest, due to risk of irrecoverability if AssetCo distributes funds. Grant Thornton is allowed 35 days to pay, given insurance arrangements.

Parties
Claimant: AssetCo PLC; Defendant: Grant Thornton UK LLP
Jurisdiction
England and Wales
Judgment Date
22 February 2019
Procedural Posture
Commercial Claim / Post Liability and Quantum Judgment; Consequential Hearing
Outcome
Orders made on consequential issues: compensatory and enhanced interest rates set, costs awarded, stay granted on terms, time to pay extended.
Legal Topics
Interest on Damages, Costs, Stay of Execution, Part 36 Offers, Judgment Enforcement
Commercial Law Civil Procedure Interest on Damages Costs Stay of Execution Part 36 Offers Judgment Enforcement

Case Brief

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Parties

AssetCo PLC

Claimant

Grant Thornton UK LLP

Defendant

Procedural Posture

Commercial Claim / Post Liability and Quantum Judgment; Consequential Hearing

Legal Issues

  1. 1 Appropriate rate of compensatory and enhanced interest on damages
  2. 2 Interest on costs
  3. 3 Requirement for electronic costs bill

Ratio Decidendi

The appropriate compensatory interest rate is three month LIBOR plus 2%, reflecting commercial borrowing rates for entities similar to AssetCo. Enhanced interest is set at 5% above LIBOR, balancing the Part 36 regime's purpose and the litigation's conduct, but not reaching the maximum uplift due to absence of egregious conduct. Interest on costs is compensatory only. A stay of execution is granted, but only on terms that the judgment sum is paid into court with 8% interest, due to risk of irrecoverability if AssetCo distributes funds. Grant Thornton is allowed 35 days to pay, given insurance arrangements.

Court Disposition

Orders made on consequential issues: compensatory and enhanced interest rates set, costs awarded, stay granted on terms, time to pay extended.

Orders

  • Compensatory interest at three month LIBOR plus 2% up to 14 December 2016.
  • Enhanced interest at 5% above LIBOR from 15 December 2016.