Scottish Court of Session Decisions

Subject_1 FOREIGN.
Subject_2 DIVISION. VIII.

Annualrent, by what Law regulated, whether of the Creditor's country or of the Debtor's.

John Wood
v.
Helen Granger

Date: 24 June 1779
Case No. No 76.

The annualrent of a debt contracted abroad, and sued for in this country, is to be restricted to the legal rate of interest here, though smaller than in the locus contractus.

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Dr James Granger, after residing in the island of St Christophers, died there in 1767; upon which his widow and her daughter Helen Granger, came over to England.

In 1772, John Wood merchant in St Christophers obtained a judgment of the Court of King's Bench in that island against Granger's Executors for L. 60 currency, due by Granger to him, with costs. Afterwards Wood brought an action in the Court of Session against Helen Granger, only surviving child of the Doctor, as representing her father, for payment of this sum, with interest, at the rate of St Christophers, from the date of the furnishing; and likewise of the sum of L. 17 as the costs of suit, with interest from the time they were expended.

Pleaded in defence against this action, 1mo, No interest ought to be found due, as none is decerned for by the judgment of the Court at St Christophers, which is the ground of the action. But, at any rate, no higher rate of interest will be allowed than what the law permits to be taken in this country. So it was found, even where the higher interests of the foreign country were stipulated by bond; Savage against Craig, No 76. p. 4530.

2do, Neither are any costs due; for, although the judgment is “for the sum of L. 60, with costs,” no account was given in, or modified by the Court at St Christophers, and consequently they cannot be decerned for by this Court.

Answered for the pursuer to the first objection; In all countries merchants are entitled to interest nomine damni on sums due to them in the course of trade, though not expressly stipulated. It is a consequence of the principles of equity which entitle the merchant to interest, that the law of the country where the debt is contracted, and where it is payable, ought to regulate the interest; for, otherwise, the merchant is overpaid, or not indemnified.

In St Christophers, the interest of money is higher than in this country, The debt in question was contracted and payable in that island. Had it been actually paid, when due, to the pursuer, who resided there, he could have reaped the same advantage from it as the other inhabitants do from money lent out. Consequently, he is not indemnified, unless he is allowed the legal and common rate of interest at St Christophers.

2do, As to the costs, it was said not to be customary for the Court in that island to modify the costs; but a certificate was produced from the solicitor-general there, bearing, that they were charged according to the custom of the place.

The Court found ‘the defender liable in payment to the pursuer of the sum of L. 60, currency of St Christophers, with the interest thereof at the rate of this kingdom, from the date of the citation in this process till payment; but found no costs of suit nor expenses due; and decerned.’

Lord Ordinary, Alva. Act. Anstruther. Alt. M'Laurin. Clerk, Orme. Fac. Col. No 79. p. 153.