MARINER INTERNATIONAL HOTELS LTD v. ATLAS LTD AND ANOTHER

MARINER INTERNATIONAL HOTELS LTD v. ATLAS LTD AND ANOTHER

The court held that prime, not HIBOR, is the appropriate base rate in this case and, on the evidence of the parties' borrowing histories and the need to avoid under-compensation while preventing windfalls, awarded interest at prime minus 0.5% from the date the cause of action arose (30 June 1998); costs awarded to Sino on a nisi basis; one day's interest of HKD 96,159.30 to be added for 2 February 2007.

Citation
MARINER INTERNATIONAL HOTELS LTD v. ATLAS LTD AND ANOTHER
Parties
Plaintiff; 1st Defendant by Counterclaim: Mariner International Hotels Limited; 1st Defendant; Plaintiff by Counterclaim: Atlas Limited; 2nd Defendant (formerly Hang Lung Development Company Limited): Hang Lung Group Limited; 2nd Defendant by Counterclaim (referred to in Judgment as the Plaintiff 'sino'): Sino Land Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 January 2008
Case Number
HCA10752/1998
Procedural Posture
Civil Contract/property (return of Deposit and Interest) / Judgment (decision in Chambers)
Outcome
Interest awarded at prime minus 0.5% from 30 June 1998; costs awarded to Sino on a nisi basis; one day's interest of HKD 96,159.30 added for 2 February 2007.
Legal Topics
Interest on Judgment, Return of Deposit, Appropriate Base Rate (prime V Hibor), Date Interest Runs (cause of Action)
Source Language
EN
Contract Civil Procedure Remedies Interest Law Property Law Interest on Judgment Return of Deposit Appropriate Base Rate (prime V Hibor) +1 more

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Parties

Mariner International Hotels Limited

Plaintiff; 1st Defendant by Counterclaim

Atlas Limited

1st Defendant; Plaintiff by Counterclaim

Hang Lung Group Limited

2nd Defendant (formerly Hang Lung Development Company Limited)

Sino Land Company Limited

2nd Defendant by Counterclaim (referred to in Judgment as the Plaintiff 'sino')

Procedural Posture

Civil Contract/property (return of Deposit and Interest) / Judgment (decision in Chambers)

Legal Issues

  1. 1 Whether HIBOR or bank prime should be the base rate for interest
  2. 2 What margin above/below base rate is appropriate (prime+1% vs prime-0.5% etc)
  3. 3 From what date statutory interest runs (date of payment or date cause of action accrued)

Ratio Decidendi

The court held that prime, not HIBOR, is the appropriate base rate in this case and, on the evidence of the parties' borrowing histories and the need to avoid under-compensation while preventing windfalls, awarded interest at prime minus 0.5% from the date the cause of action arose (30 June 1998); costs awarded to Sino on a nisi basis; one day's interest of HKD 96,159.30 to be added for 2 February 2007.

Court Disposition

Interest awarded at prime minus 0.5% from 30 June 1998; costs awarded to Sino on a nisi basis; one day's interest of HKD 96,159.30 added for 2 February 2007.

Orders

  • Interest to be calculated at prime minus 0.5% from 30 June 1998.
  • Add HKD 96,159.30 representing one day's interest at the judgment rate for 2 February 2007.