Interest

Brennan v ECO Composting Ltd and another QBD TLR 1 January; NLJ 15 December

In December 1998 the claimant was injured in an accident and became a patient. In September 2005 the defendants made a payment into court, which in March 2006 the claimant’s solicitors notified the defendants that the claimant wished to accept, for which he required the approval of the court as a patient. In October 2006 the court approved the acceptance of the payment but there was a dispute as to which party was entitled to interest upon the money in court up to that date. Paragraph 7.10(1) of the Practice Direction to CPR Part 36 provides that unless parties have agreed otherwise, interest accruing up to the date of acceptance is to be paid to the defendant. A claimant under disability is not to be treated any differently to any other claimant and therefore the claimant became entitled to interest only from the date of acceptance. However, under CPR rule 21.10(1) no acceptance of money paid into court by or on behalf of a patient was valid without the approval of the court. Accordingly, the date of acceptance was 3 October 2006, the date the court approved the settlement. Interest accrued before that date belonged to the defendants.