Interest: interest under English law

A question often raised, but until Martrade Shipping & Transport GmbH v United Enterprises Corporation (The Wisdom C) [2014] EWHC 1884 (Comm) not resolved, is exactly when London arbitrators can award interest under the Late Payment of Commercial Debts (Interest) Act 1998. That Act allows interest of 8 per cent above base rate to be awarded where a payment under a commercial contract is unjustifiably delayed.

Maritime arbitrators have in the past applied the 1998 Act, but there is an important question mark over whether that is possible where the contract has an international flavour. Popplewell J in Martrade has resolved many of the uncertainties surrounding this point, and it is clear from his judgment that the 1998 Act may not be available as often as was previously assumed.