Litigation Letter
Enhanced Interest
All-in-one Design and Build Ltd v Motcomb Estates Ltd and another (QBD TLR 4 April)
CPR rule 36.21 empowers the court to award enhanced interest at 10% over the base rate as a penalty or sanction against a
defendant who fails to accept, but not to beat, an offer made by the claimant. This provision is separate from the simple
interest which may be awarded under s35A of the Supreme Court Act 1981 to compensate a claimant for having been kept out of
his money.