In divorce proceedings, those who make overly ambitious financial claims or fail to enter into reasonable negotiations are highly likely to end up worse off. The point was powerfully made...Continue reading
- The Standard rate of interest on General damages (Pain, Suffering and Loss of Amenity) in Personal Injury cases was fixed at 2% per year by the House of Lords in the case of Birkett V Hayes . This was confirmed as appropriate by the Court of Appeal in Lawrence V Chief Constable of Staffordshire .
- The rate of interest on Special damages (out of pocket losses and expenses) is the rate over the period for which the interest is awarded which is payable on the Court Special Account (the Special Account Rate or SAR). After seven years, at 6% this rate was reduced to 3% per year on 01 February 2009, to 1.5% on 01 June 2009 and to 0.5% on 01 July 2009 where it has remained ever since.
- Given the UK economy appears to be at risk of a triple dip recession, it is unlikely that the SAR will rise again before January 2014. Interest since June 1987 has been paid daily on a 1/365th basis even in a leap year such as 2012.