Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.3/46462

Title

Commercial reality v doctrine: restitution and compound interest for void swaps

Author(s)

Ciro, Tony

Abstract

The recent swaps litigation in the United Kingdom has focused attention on the restitutionary consequences from a finding of legal nullity. The House of Lords in Westdeutsche Landesbank Girozentale v Islington LBC denied the claimant an award for compound interest for payments withheld under a void swaps agreement. This article attempts to reconcile the approach taken by the House of Lords with the decision from the Australian High Court in Hungerfords v Walker where the court allowed an award of compound interest in a tortious claim. The article argues that the High Court's decision is more in tune with commercial reality and should be used as a precursor for legislative reform to the law governing an award of statutory interest.

Publication type

Journal article

Source

Australian Business Law Review, Vol. 30, no. 3 (Jun 2002), pp. 216-226

Publication year

2002

Keyword(s)

Appeals;  Australia;  Banking;  Commercial law;  Constitutional law;  Courts;  Debt;  Great Britain;  High Court;  Hungerfords v WalkerInterest rates;  Law;  Law reform;  Legislation;  Liability;  Litigation;  Restitution;  Westdeutsche Landesbank Girozentrale v Islington LBC

Publisher

Lawbook Co.

ISSN

0310-1053

Publisher URL

http://www.thomsonreuters.com.au/

Peer reviewed