Black & Ors v Davies [2004] EWHC 1464 (QB) (22 June 2004)

Black & Ors v Davies [2004] EWHC 1464 (QB) (22 June 2004)

The Court does not have jurisdiction to award compound interest in respect of a judgment for damages for deceit, as the equitable jurisdiction to award compound interest is limited to cases where money has been obtained and retained by fraud and there is a concurrent equitable claim, not to common law damages for deceit. The House of Lords has held that such jurisdiction should not be extended by judicial intervention.

Citation
[2004] EWHC 1464
Parties
Claimant: Herbert Black; Claimant: American Iron & Metal Company Incorporated; Claimant: Lito Trade Incorporated; Defendant: Vivian John Davies
Jurisdiction
England and Wales
Judgment Date
22 June 2004
Procedural Posture
Civil (damages for Deceit/fraud) / Post Trial, Determination of Interest on Judgment Sum
Outcome
Claim for compound interest dismissed for want of jurisdiction.
Legal Topics
Compound Interest, Simple Interest, Damages for Deceit, Equitable Jurisdiction
Civil Law Equity Damages Compound Interest Simple Interest Damages for Deceit Equitable Jurisdiction

Case Brief

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Parties

Herbert Black

Claimant

American Iron & Metal Company Incorporated

Claimant

Lito Trade Incorporated

Claimant

Vivian John Davies

Defendant

Procedural Posture

Civil (damages for Deceit/fraud) / Post Trial, Determination of Interest on Judgment Sum

Legal Issues

  1. 1 Does the Court have jurisdiction to award compound interest in respect of a judgment for damages for deceit?
  2. 2 If so, should the Court exercise its discretion to do so on the facts of this case?

Ratio Decidendi

The Court does not have jurisdiction to award compound interest in respect of a judgment for damages for deceit, as the equitable jurisdiction to award compound interest is limited to cases where money has been obtained and retained by fraud and there is a concurrent equitable claim, not to common law damages for deceit. The House of Lords has held that such jurisdiction should not be extended by judicial intervention.

Court Disposition

Claim for compound interest dismissed for want of jurisdiction.

Orders

  • Court holds it has no jurisdiction to award compound interest on damages for deceit.
  • If jurisdiction had existed, compound interest would have been awarded from the appropriate date until payment, compounded yearly.