Lloyd's Maritime and Commercial Law Quarterly
BOOK REVIEW - FOREIGN CURRENCY: CLAIMS, JUDGMENTS AND DAMAGES
Charles Proctor
Partner, Fladgate LLP
FOREIGN CURRENCY: CLAIMS, JUDGMENTS AND DAMAGES. Michael N Howard, QC, MA, BCL, John Knott, Consultant, Holman Fenwick Willan, and John Kimbell, QC, MA, MPhil, BCL. Informa Law (2015) xxxviii and 341 pp, plus 11 pp Index. Hardback £265.
It appears from the preface to this text that one of its authors was the winner, whilst another was the loser in The Despina R [1979] AC 685 (HL), a landmark decision in the sphere of foreign currency claims. The lapse of time between the House of Lords’ judgment and the publication of this text has perhaps enabled the formerly opposing writers to obey Kipling’s injunction, and to treat their Triumph and Disaster just the same.
This is just as well, for the result of their collaboration—plus the efforts of John Kimbell—is an excellent text in a field of great complexity, and which can have far-reaching consequences for the litigating parties. The writers state that they have focused on “the practical problems that arise in litigation with an international dimension as a result of the existence of different currencies” and they deny any attempt at an academic analysis. Yet this is too modest, for several chapters—including those on damages in tort, interest and foreign exchange losses—contain careful and illuminating discussions of the essential principles and conflicting points of view.
The first two chapters provide a brief introduction to the general subject together with an overview of key concepts, such as the distinction between the principle of nominalism, the money of account and the money of payment, types of exchange rates and related matters.
Moving from there to a greater level of detail, Chapter 3 begins with an interesting historical discussion of the pound in its glory days. Foreign currency issues hardly ever arose, for who could possibly want a judgment in any currency other than sterling? The chapter then charts the dismantling of the UK system of exchange control and the currency’s declining international importance. Following a brief examination of issues touching the euro in Chapter 4, the text then reverts to its English roots in Chapter 5 with a description of the economic and case law developments that ultimately led to the decision in Miliangos v George Frank (Textiles) Ltd [1976] AC 443 (HL). That judgment allowed judgments to be given in the foreign currency in which a debt claim was denominated. Miliangos arose in a contractual context and Chapter 6 logically follows through the implications of the judgment in that arena. This chapter also includes useful discussion of the Rome I Regulation on the law applicable to contractual obligations, recognising the inevitable fact that cases involving multiple currencies will also usually involve multiple legal systems and, hence, intricate questions of private international law
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