Rate of interest on non commercial claims

[verbena]

Please does anyone know what rate of interest can be claimed under section 35A of the Supreme Court Act 1981 for non-commercial debts?

Thank you
Verbena

[des8]

Re: Rate of interest on non commercial claims

Rate of interest is “at such rate as the court thinks fit or as rules of court provide” and may be calculated at different rates for different periods.
No specific rates, but the 1838 Judgements Act set the rate at 8%.

[verbena]

Re: Rate of interest on non commercial claims

Thank you, but this is confusing.
I am trying to figure out a sum for settlement and have been informed that currently the interest awarded is 1% above base rate, which makes it 1.5%. This seems very low compared to 8%.

Is there a piece of legislation that can confirm this?
Thanks
Verbena

[des8]

Re: Rate of interest on non commercial claims

The rate to be charged for the period between the cause of action arising and judgement is entirely at the discretion of the court.
For commercial cases it is traditionally set at 1% above base, but in Claymore v Nautilus it was set at 2% above base following the claimant's submitting the traditional rate was unrepresentative of the true loss, and it has varied in other cases.

You need to decide what rate you need to claim to reflect what you would have had to pay to borrow a similar sum.
You may have to demonstrate to the court the accuracy of your claim, so gather your evidence and go for it!

The 2004 Law Commission Report No 287 "pre-Judgement Interest on Debts and Damages" sums up the position in paragraph 2.48:
Pre-judgment interest on debts and damages may be awarded in many differentways, at a variety of different rates. The statutory provisions alone range from0.5% below base to 8% above base. The power the courts are most likely to use iscontained within section 35A of the Supreme Courts Act and its county courtequivalent, section 69 of the County Courts Act 1984. This gives the court a widediscretion to decide what rate to use, over what period."