Hodgson v Trapp, [1989] AC 807
Citation:Hodgson v Trapp, [1989] AC 807
Rule of thumb:What is the general rule for calculating interest on damages? A stable rate of inflation multiplied by the time-period.
Judgment:
In the absence of the exact rate of interest to be applied on damages, interest is to be applied based on a stable rate of inflation.
Ratio-decidendi:
‘the incidence of taxation in the future should ordinarily be assumed to be satisfactorily taken care of in the conventional assumption of an interest rate applicable to a stable currency and the selection of a multiplier appropriate to that rate’, Lord Oliver at 835
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