Doorstop Ltd. v Gillman [2012] 2 JLR 297 (01 November 2012)

Doorstop Ltd. v Gillman [2012] 2 JLR 297 (01 November 2012)

The court must ensure that interest rates on money loans are moderate or reasonable, taking into account the contract, risk to lender, prospect of gain for borrower, market practice, parties' sophistication, and relative bargaining strength.

Citation
[2012] 2 JLR 297
Parties
Applicant: Doorstop Ltd.; Respondent: Gillman
Jurisdiction
Jersey
Judgment Date
01 November 2012
Procedural Posture
Civil / Judgment
Outcome
judgment for respondent
Legal Topics
Money Lending, Interest Rates, Customary Law, Reasonableness of Interest
Contract Law Banking Law Money Lending Interest Rates Customary Law Reasonableness of Interest

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Party arguments 2
Sign in to unlock

Parties

Doorstop Ltd.

Applicant

Gillman

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 What is the proper rate of interest at customary law for money loans?
  2. 2 What factors should the court consider in determining if an interest rate is moderate or reasonable?

Ratio Decidendi

The court must ensure that interest rates on money loans are moderate or reasonable, taking into account the contract, risk to lender, prospect of gain for borrower, market practice, parties' sophistication, and relative bargaining strength.

Court Disposition

judgment for respondent

Orders

  • Interest rate to be set at a moderate or reasonable level as determined by the court.