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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Simcoe v Jacuzzi UK Group Plc [2012] EWCA Civ 137 (16 February 2012) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2012/137.html Cite as: [2012] 2 Costs LR 401, [2012] 2 All ER 60, [2012] WLR(D) 35, [2012] EWCA Civ 137, [2012] 1 WLR 2393, [2012] CP Rep 21 |
[New search] [Printable RTF version] [Buy ICLR report: [2012] 1 WLR 2393] [View ICLR summary: [2012] WLR(D) 35] [Help]
ON APPEAL FROM LEEDS COUNTY COURT
District Judge Hill
Claim No 7LS57337
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE HOOPER
and
LORD JUSTICE McFARLANE
SITTING WITH MASTER GORDON-SAKER AS ASSESSOR
____________________
ADRIAN SIMCOE |
Appellant |
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- and - |
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JACUZZI UK GROUP PLC |
Respondent |
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Mark Friston and Paul Hughes (instructed by Berrymans Lace Mawer) for the Respondent
Hearing dates: 30 January 2012
____________________
Crown Copyright ©
The Master of the Rolls:
The factual history
The law in the High Court before the CPR
'17. … every judgment debt shall carry interest at the rate of 4 pounds per centum per annum from the time of entering up the judgment … until the same shall be satisfied … .
18. … all decrees and orders of Courts of Equity and all rules of Courts of common law … whereby any sum of money, or any costs, charges, or expenses, shall be payable to any person, shall have the effect of judgments … And the persons to whom such monies, or costs, charges, or expenses, shall be payable, shall be deemed judgment creditors within the meaning of this Act … .'
i) '[T]he unsuccessful party … has caused the costs … to be incurred, [and, as] interest is not awarded on costs incurred and paid by the successful party, why should he suffer the added loss of interest on costs incurred and paid after judgment'?
ii) 'Since … payments of costs are likely nowadays to be made to lawyers prior to taxation, … the allocatur rule would generally … do greater injustice than … the incipitur rule,.
iii) [T]he incipitur rule provides a … stimulus for payments to be made on account … prior to taxation, for costs to be more readily agreed, and for taxation to be expedited';
iv) Barristers, solicitors and expert witnesses should not be expected to finance their clients' litigation until … the [taxation is completed]'.
v) Where the interest is payable on disbursements and costs in respect of a period during which they have not been paid, there can be 'an express agreement between the solicitor and his client that any [such] interest … on the costs [shall] belong to the solicitor, and … on disbursements [shall] be held by him for … the … persons to whom they are ultimately paid.'
The law in the County Court before the CPR
'The Lord Chancellor may by order made with the concurrence of the Treasury provide that any sums to which this subsection applies shall carry interest at such rate and between such times as may be prescribed by the order.'
And it is clear from subsection (2) that 'the sums' to which this provision refers include sums payable by way of costs pursuant to a court order. Section 74(6) provides that the power is to be exercised by a statutory instrument.
'1(2) … "relevant judgment" means a judgment or order of a County Court for the payment of a sum of money of not less than £5000, and, in relation to a judgment debt, means the judgment or order which gives rise to the judgment debt. …
2(1) Subject to the following provisions of this Order, every judgment debt under a relevant judgment shall, to the extent that it remains unsatisfied, carry interest under this Order from the date on which the relevant judgment was given.
2(2) In the case of a judgment or order for the payment of a judgment debt, other than costs, the amount of which has to be determined at a later date, the judgment debt shall carry interest from that later date.'
The CPR and changes made with effect from April 1999
'(1) Every judgment debt shall carry interest at the rate of 8 pounds per centum per annum from such time as shall be prescribed by rules of court;
(2) Rules of Court may provide for the court to disallow all or part of any interest otherwise payable under subsection (1).'
'(1) Where interest is payable on a judgment pursuant to section 17 of the Judgments Act 1838 or section 74 of the County Courts Act 1984, the interest shall begin to run from the date that judgment is given unless-
(a) a rule in another Part or a practice direction makes different provision; or
(b) the court orders otherwise.
(2) The court may order that interest shall begin to run from a date before the date that judgment is given.'
The issues
Is CPR 40.8 effective in the County Court?
The meaning of article 2(2) of the 1991 Order
What is the normal rule under CPR 40.8? ouse of
If CPR 40.8(1) applies, should the normal rule apply in this case?
Concluding remarks
Lord Justice Hooper:
Lord Justice McFarlane: