- Regional costs judge rejects claim for interest on disbursement funding loan (Godfrey v Automotive Products)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Does the court have discretion to award pre-judgment interest where the claim settles by acceptance of a Part 36 offer?
- Should pre-judgment interest be awarded on the facts of this case?
- Case details
Dispute Resolution analysis: This was a case in which a claimant had entered into a disbursement funding agreement. The court held that a costs judge has discretion to award pre-judgment interest, notwithstanding that the claim settled by way of a Part 36 offer. However, the judge determined that the process of ascertaining the amount of interest payable would be disproportionate; and justice and equivalence did not demand that the court ‘guessed’ at what an appropriate rate of interest would be. The claim for pre-judgment interest was therefore rejected. Written by Alex Bagnall, technical manager, at Total Legal Solutions.
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