Trevor Slack seeks out some solid ground in the debate over interest on judgment debt
In commercial disputes, there are many approaches that can be put forward by the litigating parties to calculate pre-judgment interest (PJI). These include opportunity costs, statutory rates and borrowing rates. Unsurprisingly, different approaches can give different results, but only one can be used in a judgment. Thus, to minimise the debate over PJI rates, an approach that has economic consistency is sought.
Ignoring rates of interest found in contracts pertaining to a claim, the legal basis for applying non-contractual interest to damages awards also appears well established and can run from the date of the: cause of action; loss; or claim.
However, the type of interest, ie simple or compound, and the rate of interest are often areas of debate and/or legal argument. The analysis that follows seeks to narrow the scope for debate, and make PJI a relatively mechanical and uncontroversial issue.
Restorative justice
Per Robinson v Harman (1848) 18 LJ Ex 202, [1843-60] All ER Rep 383, the aim of a damages judgment is to restore a wronged person
