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Colin Baker v Black Sea and Baltic General Insurance Co Ltd: CA 1996

Otton LJ explained the standard commercial rate of interest: ‘The practice whereby interest is normally awarded at 1 per cent over base rate amounts to a presumption which can be displaced if its application would be substantially unfair to either party. That rate represents something of a compromise (albeit weighted in favour of the plaintiff) between what a [plaintiff kept out of his money might have earned on it and what he might have had to pay by way of interest . . ‘

Judges:

Otton LJ , Staughton LJ

Citations:

[1996] LRLR 353

Jurisdiction:

England and Wales

Citing:

Appeal fromColin Baker v Black Sea and Baltic General Insurance Co Ltd 1995
Insurance and the reinsurance policies were back to back.
Held: Potter J. said ‘the reinsurer is not liable if the claim settled does not fall within the risks covered by the policy of reinsurance as a matter of law’.
Potter J. accepted . .

Cited by:

At CABaker v Black Sea and Baltic General Insurance Co Ltd HL 20-May-1998
The question agreed to be before the court was ‘Where an insurer incurs costs in investigating settling or defending claims by his insured, can the insurer recover a proportion of these costs under a quota share or other form of proportional . .
Lists of cited by and citing cases may be incomplete.

Damages

Updated: 15 September 2022; Ref: scu.681052

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