DENNY v HODGE and TANGUY [Royal Ct]

• Jurisdiction: Jersey
• Court: Royal Court
• Judge: (Le Masurier, Bailiff and Jurats Luce and Ryan):
• Judgment Date: 15 June 1973
• Date: 15 June 1973

ROYAL COURT

(Le Masurier, Bailiff and Jurats Luce and Ryan):

R.H. Cristin for the defendant;

P.Mourant for the defendants.

Civil Procedurejudgments and ordersinterest on judgment debtinclusion of interest in judgment debtInterest on Debts and Damages (Jersey) Law 1971 gives right to have interest included in judgment debtapplies if judgment given after Law in force even though cause of action arose earliermay back-date interest to date cause of action arose

LE MASURIER, BAILIFF: The facts which, in our opinion, are relevant to the present issue are taken from the judgment of this Court delivered on October 25th, 1971, and the judgment of the Court of Appeal delivered on 20th March, 1973.

On a date which must be taken as being July 23rd, 1968, a contract made between the parties was performed and in pursuance of its terms the plaintiff paid to the defendants the sum of 20,000 and assumed responsibility for a bankers' guarantee previously given by the defendants in the sum of 30,000. From that date, therefore, the defendants were in a position to enjoy the fruits of 20,000 and the freedom from a potential liability to meet their guarantee.

It was subsequently discovered that the information given to the plaintiff on which his decision to contract had been based and which had been warranted as correct by the defendants was, in fact, erroneous. Upon that discovery being made the plaintiff instituted proceedings against the defendants claiming damages for breach of contract.

The case was heard before the Royal Court in July, 1971, and judgment was reserved. Judgment was given on October 25th, 1971, and the Royal Court awarded the plaintiff 20,210, being the amount paid to the defendants and the costs incurred by the plaintiff in relation to the contract of which the defendants were found to be in breach.

The plaintiff appealed and the Court of Appeal on March 20th, 1973, increased the award by the sum of 12,000, being the amount which the plaintiff had had to pay under the bankers' guarantee for which he had assumed responsibility.

On September 11th, 1971, that is after the case had been heard but before judgment was given, there came into force the Interest on Debts and Damages (Jersey) Law, 1971, which provides

"Article 1.

In any proceedings tried in the Royal Court for the recovery of any debt or damages, the Court may, if it thinks fit, order that there shall be included in the sum for which judgment is given interest at such rate as it thinks...