Quorum AS v Schramm (2) [2001] EWHC 505 (Comm) (21 November 2001)

Quorum AS v Schramm (2) [2001] EWHC 505 (Comm) (21 November 2001)

Interest should run from 31 March 1992, not the date of loss, due to the unusual circumstances requiring restoration and assessment. For the period of unexplained delay by claimants (September 1995 to September 1997), interest is awarded at half the agreed rate. Claimants are entitled to costs as successful parties, but recovery is reduced to 80% to reflect underwriters' success on a severable issue and the claimants' conduct affecting the trial.

Citation
[2001] EWHC 505 (Comm)
Parties
Claimant: Claimants; Defendant: Underwriters
Jurisdiction
England and Wales
Judgment Date
21 November 2001
Procedural Posture
Commercial Insurance Claim / Post Judgment Determination on Interest and Costs
Outcome
Interest awarded from 31 March 1992 at agreed rate, but at half rate for period of claimant delay; claimants recover 80% of their costs.
Legal Topics
Interest on Damages, Costs Orders, Delay in Prosecution, Part 36 Offers, Conduct of Parties
Commercial Law Insurance Law Civil Procedure Interest on Damages Costs Orders Delay in Prosecution Part 36 Offers Conduct of Parties

Case Brief

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Parties

Claimants

Claimant

Underwriters

Defendant

Procedural Posture

Commercial Insurance Claim / Post Judgment Determination on Interest and Costs

Legal Issues

  1. 1 From what date should interest on the insurance claim run?
  2. 2 Should the period or rate of interest be reduced due to delay by the claimants?
  3. 3 What is the appropriate order as to costs, considering partial success and conduct of the parties?

Ratio Decidendi

Interest should run from 31 March 1992, not the date of loss, due to the unusual circumstances requiring restoration and assessment. For the period of unexplained delay by claimants (September 1995 to September 1997), interest is awarded at half the agreed rate. Claimants are entitled to costs as successful parties, but recovery is reduced to 80% to reflect underwriters' success on a severable issue and the claimants' conduct affecting the trial.

Court Disposition

Interest awarded from 31 March 1992 at agreed rate, but at half rate for period of claimant delay; claimants recover 80% of their costs.

Orders

  • Interest to run from 31 March 1992 at prime +½%, except at half rate from 1 September 1995 to 1 September 1997.
  • Claimants to recover 80% of their costs of the action.