- Accueil
- Actualités et public…
- Publications
- Law on interest appl…
16 octobre 2020
Disputes Quick Read – 73 de 103 Publications
Disputes Quick Read: Law on interest applicable to US dollar awards reaffirmed
- Quick read
We recently updated you on Dodika Limited & Others v United Luck Group Holdings Limited [2020] EWHC 2101 (Comm) – a decision where we obtained summary judgment for the release of USD 50 million of the sale proceeds for the selling shareholders in Outfit7, creators of the Talking Tom digital games.
One of the issues that needed to be decided after the Dodika judgment was what interest rate should apply to the USD 50 million that had been held in escrow. Let's take a closer look at how this issue was ultimately resolved and its potential impact on future cases.
The facts
The parties agreed that interest should be awarded from the date on which the funds should have been released from the escrow account (1 July 2019), but did not agree on the applicable interest rate. It was a choice between US Prime Rate (which we argued) and the Bank of England base rate plus 1% (which the defendants argued); the difference was around USD 2 million.
Following a consequentials hearing on 9 September 2020, the court awarded interest at the US Prime rate and reiterated that this is the conventional rate to be applied to an award in US Dollars.
Key points to consider in an applicable interest rate dispute
As highlighted in the Dodika interest judgment ([2020] EWHC 2535 (Comm)), if you have an award in USD, you should consider the following points when arguing the applicable interest rate:
- Using the comparatively high US Prime rate (when compared to for example Bank of England base rate plus 1%) does not mean that you'll be overcompensated. Compensation is measured by reference to a party's presumed borrowing rate in the relevant currency because that rate fairly represents the loss of use of that currency.
- Your domicile doesn't determine the rate of interest payable. The court will take a broad-brush approach and won't look to the actual loss unless you're seeking higher interest rates. That only one of the 193 selling shareholders in the Dodika case was a natural person domiciled in the US did not change the court's view that US Prime was the most appropriate rate.
- In this case, the funds on which interest was being applied were held in an escrow account. The applicable interest rate wasn't limited to the rate set out in the escrow agreement agreed between the parties and the escrow agent to apply while the funds were held in escrow. Instead, it should represent the loss for being kept out of funds for the period after the funds should have been released.
- Just because the English Court has been chosen for dispute resolution doesn't mean that the Bank of England base rate must be used.
How does this impact future applicable interest rate disputes?
This judgment is a helpful restatement of the law on interest applicable to US dollar awards. Given the comparatively high US Prime rate – the applicable rate for the period in this case ranged from 5.5% to 3.25% – compared to Bank of England base rate, the difference in the amount of interest you'll receive can be significant.
Find out more
If you'd like to discuss the issues raised in this article in greater detail, please contact Laurence Lieberman in our Disputes and Investigations team.
Dans cette série
Opening the doors: how the January 2026 pilot will transform access to court documents
21 octobre 2025
par plusieurs auteurs
Collective actions impacting big tech - Ireland set to test the boundaries in ICCL v Microsoft
11 juin 2025
par Ryan Ferry, Edwina Kelly
Wirral Council v Indivior plc: Court of Appeal upholds strike out of opt-in representative action securities claim
30 janvier 2025
par Katie Chandler
What are the litigation trends in 2025?
22 janvier 2025
par plusieurs auteurs
Changes to the privilege rules between companies and shareholders
6 décembre 2024
Victory for energy companies/defeat for the environment?
14 novembre 2024
par Tim Strong, Kate Hamblin
Failure to prevent fraud offence to come into force in September 2025
14 novembre 2024
par Emma Allen
Essex Cricket Club charged by Cricket Regulator
30 octobre 2024
par plusieurs auteurs
UK introduces mandatory reimbursement rules to combat APP fraud
15 octobre 2024
par Emma Allen, Andrew Spencer
Notice of Claim: What constitutes 'reasonable detail'?
5 juillet 2024
par Stuart Broom, Tom Charnley
New SFO Director announces bold plans to tackle fraud
21 mars 2024
par Emma Allen, Amy Cheng
What are the litigation trends for 2024?
1 février 2024
par Katie Chandler, Emma Allen
ClientEarth v FCA: Challenging Regulator Decisions
12 février 2024
par Tim Strong, Nicole Baldev
First of its kind judicial guidance on the use of AI in the courts
14 décembre 2023
Witness familiarisation - does it affect the court's assessment of witness credibility?
13 décembre 2023
CAT to hear the first application for a collective settlement approval order
17 octobre 2023
par Katie Chandler
Supreme Court rules that APP fraud victims cannot rely on Quincecare Duty
4 août 2023
par plusieurs auteurs
The Law Commission's Consultation Process on the Arbitration Act 1996 – taking stock
21 juillet 2023
What does the latest decision of the CAT in the Mastercard/Visa proceedings mean for class actions?
10 juillet 2023
par Katie Chandler
Disputes Quick Read: ClientEarth refused permission to pursue directors of Shell
1 juin 2023
par plusieurs auteurs
Disputes Quick Read – developments in the fixed costs regime
3 mai 2023
par James Bryden
Disputes Quick Read: Service by email – are the rules any clearer?
20 avril 2023
par James Bryden
Disputes Quick Read: Breaking the north/south divide?
5 avril 2023
par Tom Charnley
Disputes Quick Read - What do practitioners think about making alternative dispute resolution (ADR) compulsory?
8 mars 2023
Disputes Quick Read: What are the litigation trends for 2023?
2 mars 2023
par Katie Chandler, Emma Allen
Disputes Quick Read: further guidance on witness statement preparation rules
14 février 2023
Disputes Quick Read: A cautionary tale – settlement agreement (un)wittingly releases all claims for fraud
13 février 2023
Disputes Quick Read: Why the UK should join the Hague Judgments Convention 2019
8 février 2023
par Jessie Prynne
Disputes Quick Read: extensive information orders granted against crypto exchanges following hack
19 janvier 2023
par Georgina Jones
Disputes Quick Read: A new approach to giving evidence? WhatsApp with that?
3 octobre 2022
par Gemma Broughall
Disputes Quick Read: Ethereum Merge - what legal issues arise?
22 septembre 2022
par Emma Allen
Disputes Quick Read: New obligations on cryptobusinesses to report under the UK sanctions regime
9 août 2022
par Nick Maday
Disputes Quick Read: Disclosure - What information can be redacted?
25 juillet 2022
Disputes Quick Read: what claims exist when a smart contract is breached?
6 juillet 2022
par Emma Allen
Disputes Quick Read: New gateway for serving Norwich Pharmacal Orders and Bankers Trust orders out of the jurisdiction
Welcome news for those pursuing fraud claims in the English Courts
28 juillet 2022
par Emma Allen
Disputes Quick Read: Defining the duty - the limits of the responsibility assumed by professionals
27 juillet 2022
par Stuart Broom
Disputes Quick Read: Climate change litigation – successful challenge to government's Net Zero Strategy
29 juillet 2022
par Jess Thomas, Lucy Waddicor
Disputes Quick Read: Judicial Review and Courts Act 2022 – now in force
17 juin 2022
par Stephanie High
Disputes Quick Read: an important reminder of the duty to disclose electronic documents in native format
13 juin 2022
Disputes Quick Read: ENRC prevails in claim against former solicitor
26 mai 2022
Disputes Quick Read: Climate change litigation update – McGaughey v Universities Superannuation Scheme Limited
31 mai 2022
par plusieurs auteurs
Don't lose your keys: Bitcoin developers do not have a duty to assist owners in recovering lost cryptocurrency
4 avril 2022
par Emma Allen
Disputes Quick Read: The new witness statement preparation rules – a year on
5 avril 2022
par Stephanie High
Disputes Quick Read: ClientEarth v Shell – climate change litigation shifts focus to UK companies
31 mars 2022
par plusieurs auteurs
Disputes Quick Read: High Court rules that failure to provide adequate data security is not a positive act
21 septembre 2021
par Matthew Caskie
Disputes Quick Read: Key changes to the Disclosure Pilot Scheme
13 septembre 2021
Disputes Quick Read: Judicial Review and Courts Bill – unpacking the UK government's proposed amendments
6 septembre 2021
par Stephanie High
Disputes Quick Read: Will litigants be compelled to participate in alternative dispute resolution?
2 août 2021
Disputes Quick Read: Freezing injunctions – maximum custodial sentence imposed for breach
21 juillet 2021
Disputes Quick Read: The online future of civil justice – the end of the legal profession or the end of legal drudgery?
15 juillet 2021
par Jess Thomas
Disputes Quick Read: Will the courts change forever post-COVID?
26 mai 2021
par David de Ferrars
Disputes Quick Read: One Blackfriars administrators cleared of misfeasance
5 mai 2021
par Stephen O'Grady
Disputes Quick Read: Not your prerogative – the Independent Review of Administrative Law reports its recommendations on judicial review
21 avril 2021
par Stephanie High
Disputes Quick Read: Amendments to the Disclosure Pilot Scheme – a step in the right direction
31 mars 2021
Disputes Quick Read: UK Supreme Court rules on the territorial extent of the SFO's powers
26 février 2021
par Tim Strong
Disputes Quick Read: No dropping anchor – parent company liability for environmental claims
24 février 2021
Disputes Quick Read: What lawyers need to know about new witness statement preparation rules
20 janvier 2021
par Stephanie High
Disputes Quick Read: Should you still choose the English courts to have jurisdiction in your international contracts after Brexit?
12 janvier 2021
par Tim Strong
Disputes Quick Read: Privilege lost in the EU post-Brexit (with exceptions)
23 novembre 2020
Disputes Quick Read: Law on interest applicable to US dollar awards reaffirmed
16 octobre 2020
Disputes Quick Read: Care required when drafting SPA claim notices
23 septembre 2020
par Stuart Broom
Disputes Quick Read: Why the modernised LCIA rules are a welcome update
7 octobre 2020
par Nick Storrs
Disputes quick read: Mandatory changes to Statements of Truth
18 mai 2020
par Katie Chandler
Disputes Quick Read: COVID-19 and supply chain disruption – key issues
9 avril 2020
par plusieurs auteurs
Disputes Quick Read: High Court orders parties to explore options for 5-week remote trial
15 avril 2020
Disputes Quick Read: Tomlin Orders – ensuring the confidentiality of settlement terms
27 avril 2020
Disputes Quick Read: UK's OFSI fines Standard Chartered Bank £20 million for sanctions breaches
21 avril 2020
par Stephanie High
Disputes Quick Read: A different approach to witness evidence
11 mars 2020
par James Bryden
Disputes Quick Read: Coronavirus - a growth in virtual courts?
17 mars 2020
par Stuart Broom
Disputes quick read: climate change activism by litigation
26 février 2020
par Tim Strong, Andrew Howell
Disputes Quick Read: Commercial Court's arbitral power shift
21 février 2020
par Andrew Howell
Disputes Quick Read: Court stays evictions during COVID-19 – is this lawful?
2 juin 2020
par Georgina Jones
Disputes Quick Read: Will the civil justice system change forever post COVID-19?
16 juin 2020
par Georgina Jones
Disputes Quick Read: Privilege waiver warning
2 juillet 2020
par Tim Strong, Georgina Jones
Disputes Quick Read: Retailers reign supreme in Visa and Mastercard proceedings
9 juillet 2020
Disputes Quick Read: The contra proferentem rule reconsidered?
21 juillet 2020
Disputes Quick Read: Scope of duty and the SAAMCo counterfactual following Manchester Building Society
3 décembre 2021
Disputes Quick Read: Facilitating transactions in cryptoassets - Lord Leggatt and the point of commercial law
24 novembre 2021
par Stuart Broom
Disputes Quick Read: Privy Council clarifies the law on freezing injunctions in aid of foreign proceedings
8 octobre 2021
par Katie Chandler
Disputes Quick Read: Climate change litigation – what's the latest?
10 janvier 2022
par Tim Strong, Jess Thomas
Disputes Quick Read: Court decisions on the Disclosure Pilot Scheme – the 2021 roundup
20 janvier 2022
par Natalia Faekova
Disputes Quick Read: Climate change litigation update
8 mars 2022
par Jess Thomas, Lucy Waddicor
Disputes Quick Read: Assumption of responsibility - tax schemes and investors
22 mars 2022
par Stuart Broom
Disputes Quick Read: Dealing in crypto? Be careful what you call it
7 avril 2022
par Emma Allen, Georgina Jones
Related Insights
When intelligent systems fail: a case study in AI liability and the future of commercial disputes
par Katie Chandler et Esha Marwaha
Opening the doors: how the January 2026 pilot will transform access to court documents
par plusieurs auteurs