No
equitable jurisdiction to award compound interest in all fraud cases
The
Court of Appeal has dismissed an appeal against the strike out of part of a
"follow-on" damages claim concerning an infringement of EU
competition law in the market for LCD panels. The Court ruled that there is no basis
to invoke the equitable jurisdiction to award compound interest. The ruling is a set-back for LCD cartel claimants
– here all in liquidation.
The
equitable jurisdiction to award compound interest is not available in every
case of fraud. The Court ruled that such jurisdiction is available only where
the defendant has retained the claimant's funds and used them for their own
benefit.
Moreover,
the Court found that even if there was such jurisdiction to expand the scope of
damages, it would not be appropriate in this case. The claimants could recover compound interest
at common law post-insolvency, if they could plead and prove loss. In this case the claimants accepted that they
had not suffered such losses, other than being kept out of the damages suffered
pre-insolvency.
A
five-week trial is scheduled for October 2023.
Granville
Technology Group Ltd (in liquidation) and others v LG Display Company Ltd and
another [2023] EWCA Civ
980
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