Polish Steam Ship Co. v. Atlantic Maritime Co. (The Garden City (No. 2)) - Q.B.D. (Adm.Ct.) (Parker J.) - 25 February 1983

Interest on money paid into court in limitation actions

On 19 March 1969 a collision occurred between the plaintiffs’ vessel Zaglebie Debrowski and the defendants’ vessel Garden City . In a collision action in 1976 it was held that the vessels were respectively 60% and 40% to blame. On 27 April 1978 the plaintiffs commenced a limitation action under section 503 of the Merchant Shipping Act 1894 as amended. On 28 April 1978 the plaintiffs paid into court the sum of £692,900. Of this sum, £395,341 was in respect of the limitation figure correctly determined as at that date under section 503 as amended, and £297,559 was in respect of interest on that sum from date of collision to 30 April 1978 at 8.25% being the mean of the interest rates awarded during the period. The amount paid in was placed on Short Term Investment Account.