BV8 Limited v BV9 Limited (in administration) & Anor
[2023] EWHC 3048 (Ch)
Irena Ferme v Simon Matthew Gwinnutt
9 August 2023
[2023] EWHC 2035 (Ch)
High Court
Someone tried to get interest on late payment of money, but the judge said no because they didn't prove they lost money because of the delay. The judge also said that threatening the judge wasn't okay.
Key Facts
- •Appeal against refusal to admit proof of debt under r.14.8 of the Insolvency (England and Wales) Rules 2016.
- •Claim for interest on a £40,800 debt owed by Emma Property Management Limited (in liquidation) to Dr Borut Samastur, assigned to Ms Ferme.
- •Debt arose from the termination of contracts for the purchase of two flats, with payment delayed from December 2018 to June 2020.
- •Proof of debt claimed £5,589.16 interest, solicitor's costs, statutory compensation, and expenses.
- •Ms Ferme represented herself, while Mr Jones represented the liquidator.
- •Ms Ferme verbally threatened the judge during the hearing.
Legal Principles
The Late Payment of Commercial Debts (Interest) Act 1998 applies only to commercial contracts for the supply of goods or services.
Late Payment of Commercial Debts (Interest) Act 1998
Common law allows damages for loss resulting from late payment of debt, but requires pleading and proving actual loss.
Sempra Metals v Inland Revenue Commissioners [2008] 1 AC 561; Sagicor Bank Jamaica Ltd v Seaton [2023] 1 WLR 1759
Insolvency Rules 2016 Rule 14.23 governs interest on proved debts in insolvency proceedings; it replaces contractual rights to interest.
Insolvency Rules 2016, Rule 14.23
Courts have statutory jurisdiction to award interest on debts if proceedings are commenced (Senior Courts Act 1981, s.35A; County Courts Act 1984, s.69).
Senior Courts Act 1981, s.35A; County Courts Act 1984, s.69
Outcomes
Appeal dismissed.
None of the four potential legal routes (1998 Act, common law damages for late payment, Insolvency Rules 2016 Rule 14.23, and statutory interest) supported Ms Ferme's claim. No evidence of actual loss from the delayed payment was presented.