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
Legal Issues
- 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 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
Full Case Text
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