Key Facts
- •Mapfre appeals against lower court decisions awarding interest on damages in two conjoined appeals (Nicholls and Woodward) based on Spanish law (Article 20 of the Spanish Insurance Contract Act).
- •Both cases involved personal injury accidents in Spain, with liability admitted by Mapfre.
- •Lower courts awarded interest based on Spanish law, despite Mapfre's argument that interest is a procedural matter governed by UK law (section 69 of the County Courts Act 1984).
- •The appeals question whether a foreign procedural sanction can be applied when English procedural rules apply, considering the impact of the Rome II Regulation.
Legal Principles
Award of interest on damages is generally procedural (lex fori), not substantive (lex causae).
Maher v Groupama [2009] EWCA Civ 1191
Rome II Regulation (Article 1(3)) excludes evidence and procedure from its scope; Article 15 broadly addresses substantive aspects of liability and damages.
Regulation (EC) 864/2007
The court has discretion to award interest, but this discretion must be exercised judicially. Factors to be considered may include relevant foreign law provisions.
Maher v Groupama [2009] EWCA Civ 1191
Outcomes
Appeals dismissed.
The court found that the right to interest under Spanish law is substantive, not procedural, due to Rome II's broad interpretation of substantive law and narrow interpretation of procedure. Applying Spanish interest rates was justified under the lex causae.