Reinhard v Ondra

Reinhard v Ondra

The appropriate rate of statutory interest for the claimant, a sophisticated investor, is three percent above base rate, reflecting neither the low investment rate nor the high unsecured borrowing rate, but a fair compromise given recent low interest rates and the absence of a presumption for one percent above base.

Parties
Claimant: Reinhard; Defendant: ONDRA
Jurisdiction
England and Wales
Judgment Date
29 July 2015
Procedural Posture
Civil / Judgment
Outcome
interest awarded at three percent above base rate
Legal Topics
Statutory Interest, Compensation for Deprivation of Money, Assessment of Interest Rates

Case Brief

Summary, issues, holding and outcome

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Parties

Reinhard

Claimant

ONDRA

Defendant

Procedural Posture

Civil / Judgment

  1. 1 What is the appropriate rate of statutory interest to compensate the claimant for being kept out of his money under s.35A of the Senior Courts Act 1981?
  2. 2 Should the rate reflect borrowing costs, investment returns, or another proxy for loss?

Ratio Decidendi

The appropriate rate of statutory interest for the claimant, a sophisticated investor, is three percent above base rate, reflecting neither the low investment rate nor the high unsecured borrowing rate, but a fair compromise given recent low interest rates and the absence of a presumption for one percent above base.

Court Disposition

interest awarded at three percent above base rate

Orders

  • Statutory interest to be paid at three percent above base rate on the sums paid into Mishcon de Reya’s current account pending appeal