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You are here: BAILII >> Databases >> The Law Commission >> Pre-Judgment Interest on Debts and Damages (Report) [2004] EWLC 287(APPENDIX_B) (23 February 2004) URL: http://www.bailii.org/ew/other/EWLC/2004/287(APPENDIX_B).html Cite as: [2004] EWLC 287(APPENDIX_B) |
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THE CURRENT LEGISLATION
This appendix sets out the two main statutory provisions on interest in their current form. Section 35A of the Supreme Court Act 1981 deals with the High Court's powers to award interest on debts and damages. Section 69 of the County Courts Act is the equivalent provision for county courts. SUPREME COURT ACT 1981, SECTION 35A
Power of High Court to award interest on debts and damages
(1) Subject to rules of court, in proceedings (whenever instituted) before the High Court for the recovery of a debt or damages there may be included in any sum for which judgment is given simple interest, at such rate as the court thinks fit or as rules of court may provide, on all or any part of the debt or damages in respect of which judgment is given, or payment is made before judgment, for all or any part of the period between the date when the cause of action arose and—
(a) in the case of any sum paid before judgment, the date of the payment; and
(2) In relation to a judgment given for damages for personal injuries or death which exceed £200 subsection (1) shall have effect—(b) in the case of the sum for which judgment is given, the date of the judgment.
(a) with the substitution of "shall be included" for "may be included"; and
(3) Subject to rules of court, where—(b) with the addition of "unless the court is satisfied that there are special reasons to the contrary" after "given", where first occurring.
(a) there are proceedings (whenever instituted) before the High Court for the recovery of a debt; and
(b) the defendant pays the whole debt to the plaintiff (otherwise than in pursuance of a judgment in the proceedings),
the defendant shall be liable to pay the plaintiff simple interest at such rate as the court thinks fit or as rules of court may provide on all or any part of the debt for all or any part of the period between the date when the cause of action arose and the date of the payment.(4) Interest in respect of a debt shall not be awarded under this section for a period during which, for whatever reason, interest on the debt already runs.
(5) Without prejudice to the generality of section 84 rules of court may provide for a rate of interest by reference to the rate specified in section 17 of the Judgments Act 1838 as that section has effect from time to time or by reference to a rate for which any other enactment provides.
(6) Interest under this section may be calculated at different rates in respect of different periods.
(7) In this section "plaintiff" means the person seeking the debt or damages and "defendant" means the person from whom the plaintiff seeks the debt or damages and "personal injuries" includes any disease and any impairment of a person's physical or mental condition.
(8) Nothing in this section affects the damages recoverable for the dishonour of a bill of exchange.
Inserted by Administration of Justice Act 1982 (c.53), s. 15(1), Sch. 1 Pt. I
COUNTY COURTS ACT 1984, SECTION 69
Power to award interest on debts and damages(1) Subject to county court rules, in proceedings (whenever instituted) before a county court for the recovery of a debt or damages there may be included in any sum for which judgment is given simple interest, at such rate as the court thinks fit or as may be prescribed, on all or any part of the debt or damages in respect of which judgment is given, or payment is made before judgment, for all or any part of the period between the date when the cause of action arose and—
(a) in the case of any sum paid before judgment, the date of the payment; and
(2) In relation to a judgment given for damages for personal injuries or death which exceed £200 subsection (1) shall have effect—(b) in the case of the sum for which judgment is given, the date of the judgment.
(a) with the substitution of "shall be included" for "may be included"; and
(3) Subject to county court rules, where—(b) with the addition of "unless the court is satisfied that there are special reasons to the contrary" after "given", where first occurring.
(a) there are proceedings (whenever instituted) before a county court for the recovery of a debt; and
(b) the defendant pays the whole debt to the plaintiff (otherwise than in pursuance of a judgment in the proceedings),
the defendant shall be liable to pay the plaintiff simple interest, at such rate as the court thinks fit or as may be prescribed, on all or any part of the debt for all or any part of the period between the date when the cause of action arose and the date of the payment.(4) Interest in respect of a debt shall not be awarded under this section for a period during which, for whatever reason, interest on the debt already runs.
(5) Interest under this section may be calculated at different rates in respect of different periods.
(6) In this section "plaintiff" means the person seeking the debt or damages and "defendant" means the person from whom the plaintiff seeks the debt or damages and "personal injuries" includes any disease and any impairment of a person's physical or mental condition.
(7) Nothing in this section affects the damages recoverable for the dishonour of a bill of exchange.
(8) In determining whether the amount of any debt or damages exceeds that prescribed by or under any enactment, no account shall be taken of any interest payable by virtue of this section except where express provision to the contrary is made by or under that or any other enactment.
