Persimmon Homes (South Coast) Ltd v Hall Aggregates (South Coast) Ltd. & Anor

Persimmon Homes (South Coast) Ltd v Hall Aggregates (South Coast) Ltd. & Anor

The appropriate rate of interest for sums due prior to judgment is 1% over base rate up to 5 February 2009 and 2.5% thereafter, reflecting commercial rates. There is no basis for awarding Judgments Act interest at 8% for pre-judgment periods, nor for abating interest due to delay, as Persimmon's conduct did not amount to unreasonable delay. Judgment interest at 8% applies only from the date of judgment.

Parties
Claimant: Persimmon Homes (South Coast) Limited; Defendant: Hall Aggregates (South Coast) Limited; Defendant: Cemex UK Properties Limited
Jurisdiction
England and Wales
Judgment Date
28 August 2012
Procedural Posture
Commercial/construction Dispute / Post Judgment Application for Interest Determination
Outcome
Application for higher interest rate and abatement dismissed in part; commercial rate of interest awarded; parties to agree quantum of interest.
Legal Topics
Interest on Judgment Debts, Delay and Abatement of Interest, Assessment of Damages
Commercial Law Construction Law Interest on Judgment Debts Delay and Abatement of Interest Assessment of Damages

Case Brief

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Parties

Persimmon Homes (South Coast) Limited

Claimant

Hall Aggregates (South Coast) Limited

Defendant

Cemex UK Properties Limited

Defendant

Procedural Posture

Commercial/construction Dispute / Post Judgment Application for Interest Determination

Legal Issues

  1. 1 What is the appropriate rate of interest to be awarded on sums due prior to judgment?
  2. 2 Should interest be awarded at the Judgments Act rate or a commercial rate?
  3. 3 Should there be any abatement of interest for alleged delay by the claimant in commencing or prosecuting the claim?

Ratio Decidendi

The appropriate rate of interest for sums due prior to judgment is 1% over base rate up to 5 February 2009 and 2.5% thereafter, reflecting commercial rates. There is no basis for awarding Judgments Act interest at 8% for pre-judgment periods, nor for abating interest due to delay, as Persimmon's conduct did not amount to unreasonable delay. Judgment interest at 8% applies only from the date of judgment.

Court Disposition

Application for higher interest rate and abatement dismissed in part; commercial rate of interest awarded; parties to agree quantum of interest.

Orders

  • Interest awarded at 1% over base rate up to 5 February 2009, then at 2.5% thereafter, on sums due prior to judgment.
  • Judgments Act interest at 8% applies only from the date of judgment.