Contributed By Signature Litigation LLP
Under English law, both pre-judgment and post-judgment interest is available.
Pre-judgment interest is available under contract, statute and equity. Generally, the court has discretion to award pre-judgment interest on a simple basis, at a rate the court considers appropriate, and for the period between the date on which the cause of action arose and the date of judgment or date of payment (whichever is the earlier). However, this discretion may be displaced by the parties' contract if it includes specific provisions regarding interest (these are generally enforced by the court). Alternatively, the discretion may be displaced if the Late Payments of Commercial Debts (Interest) Act 1998 applies. This act adds an implied term in business-to-business contracts, giving a prescribed rate of interest (8%) on the price of goods or services, plus a fixed sum and reasonable costs of recovering the debt.
If a successful claim is brought in the High Court, interest generally accrues at a rate of 8% from the date of judgment. In the County Court, interest also generally accrues at a rate of 8% from the date of the judgment for sums of no less than GBP5,000 or where a debt falls within the scope of the Late Payments of Commercial Debts (Interest) Act 1998.