Persimmon Homes v Hall Aggregates
Discretionary interest rates following an award of
damages
http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/TCC/2012
/2429.html&query=persimmon+and+hall+and+aggregates&method=Boolean
This case involved a commercial dispute between two large
companies. The claimant was awarded damages and a dispute arose as
to the appropriate rate of discretionary interest which it should
be entitled to pursuant to section 35A of the Senior Courts Act
1981 (ie interest up to the date of judgment). Ramsey J decided the
following points:
(1) The appropriate rate of interest should be 2% over base rate
(ie 2.5%). Although there has, in the past, been a presumption of
1% over base, the judge said that this presumption should apply
only up until 5 February 2009, when the base rate dropped from 1.5%
to 1%. From 5 February 2009 onwards, the appropriate rate of
interest should remain at 2.5%. His finding reflects a provision in
the current
