Four years not 'extraordinary and inexcusable' delay for interest on damages (Hackney v Aviva)

Table of contents

• Practical implications
• Court details
• Facts
• Judgment

Article summary

The TCC has awarded a claimant interest at the rate of 2% above base rate for the relevant period despite the extraordinary delay in progressing proceedings. In doing so, it found it would be inappropriate to treat the (charity) claimant as having the same commercial characteristics as a small or medium sized business and to do so would result in a ‘substantial windfall’ to the claimant. However, it also held that in this economic climate, with the effect of the global economic climate on interest rates, a rate of 1% above base rate would also be unfair. It also found the date from which interest would run was the date on which the loss was suffered rather than the (earlier) date the cause of action accrued. In coming to its decision, the court considered a number of key authorities on the applicable date, period and rate of interest on damages.