- Compensatory and enhanced (Part 36) interest considered (Assetco Plc v Grant Thornton)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Compensatory interest (pre-Part 36)
- Enhanced interest under CPR 36.17
- Form of bill of costs
- Stay of execution, judgment interest and time to pay
- Case details
Dispute Resolution analysis: Following an award of damages against Grant Thornton for £22m-odd for negligent auditing of Assetco, the court has now awarded interest, both compensatory and enhanced (under CPR 36.17(4) for Grant Thornton’s failure to ‘beat’ Assetco’s two Part 36 offers) on the damages and costs in this case. In so doing the court warned of the ‘danger of being seduced into looking at the minutiae of the borrowing’ when considering appropriate rates of compensatory interest and noted that the Part 36 decision in OMV v Glencore, while providing useful guidance and clear authority that Part 36 enhanced interest is not limited to being compensatory in nature, was a case of ‘extreme facts.’ The judgment in Assetco v Grant Thornton therefore provides a useful illustration of the court’s approach when considering awards of interest, as well as considering a dispensation on filing an electronic bill of costs and staying execution of judgment pending appeal.
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