VS MSN 36118 Cav Designated Activity Company v SpiceJet Ltd [2023] EWHC 1412 (Comm) (09 June 2023)

VS MSN 36118 Cav Designated Activity Company v SpiceJet Ltd [2023] EWHC 1412 (Comm) (09 June 2023)

Clause 9.2 of the Lease entitles the claimant to interest at 3% compounded annually from the due date of each payment, not monthly, as monthly compounding would be penal and not the likely intention of the parties. Costs are awarded on the standard basis, not indemnity, as nothing in the case justifies departure from the norm or displacement of the CPR costs rules.

Citation
[2023] EWHC 1412 (Comm)
Parties
Claimant: VS MSN 36118 CAV Designated Activity Company; Defendant: SpiceJet Limited
Jurisdiction
England and Wales
Judgment Date
09 June 2023
Procedural Posture
Commercial Court Claim / Post Summary Judgment; Consequential Matters
Outcome
Claimant entitled to interest at 3% compounded annually, costs of the application and action, assessed costs of £30,000 for the application, and interim payment of £14,000 for action costs.
Legal Topics
Compound Interest, Costs, Interpretation of Contractual Clauses
Commercial Law Contract Law Compound Interest Costs Interpretation of Contractual Clauses

Case Brief

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Parties

VS MSN 36118 CAV Designated Activity Company

Claimant

SpiceJet Limited

Defendant

Procedural Posture

Commercial Court Claim / Post Summary Judgment; Consequential Matters

Legal Issues

  1. 1 Whether the claimant is entitled to compound interest under clause 9.2 of the Lease and at what frequency
  2. 2 Whether the claimant is entitled to costs on an indemnity basis or standard basis

Ratio Decidendi

Clause 9.2 of the Lease entitles the claimant to interest at 3% compounded annually from the due date of each payment, not monthly, as monthly compounding would be penal and not the likely intention of the parties. Costs are awarded on the standard basis, not indemnity, as nothing in the case justifies departure from the norm or displacement of the CPR costs rules.

Court Disposition

Claimant entitled to interest at 3% compounded annually, costs of the application and action, assessed costs of £30,000 for the application, and interim payment of £14,000 for action costs.

Orders

  • Interest at 3% compounded annually from due date of each payment
  • Declaration of entitlement to post-judgment interest at 3% compounded annually or statutory rate, at claimant's election