Executive Summary
- The High Court ruled in favor of Henderson & Jones Ltd ("Claimant") against Salica Investments Ltd and Dominic Perks ("Defendants") for breach of confidence.
- Judgment sum awarded: £2,154,285 plus interest.
- Key dispute: appropriate interest rate on judgment sum and validity of Claimant’s Part 36 offer.
- Court favored a 5% above Bank of England base rate interest, reflecting borrowing costs for individuals/small businesses.
- Defendants seek permission to appeal.
Sanctions Highlights
- Sanctions implications identified (SDN-related).
- No direct sanctions enforcement actions detailed, but litigation funder’s role and defendants’ financial status (liquidation/administration) raise compliance and exposure risks.
- Potential indirect sanctions risk due to defendants’ corporate structures and cross-border financial dealings.
Emerging Risks
- Increased litigation funding activity in cases involving complex financial claims and sanctions exposure.
- Risk of protracted appeals affecting enforcement timelines and recovery.
- Potential reputational risk for parties involved due to public judgment and sanctions linkage.
- Financial instability of defendants (liquidation, administration) complicates recovery prospects.
Geopolitical Impact
- UK jurisdiction central to enforcement and sanctions compliance.
- Reflects UK courts’ willingness to impose commercial interest rates aligned with real borrowing costs, signaling support for small businesses/private individuals in litigation.
- Reinforces UK’s role as a key venue for resolving disputes involving sanctions and cross-border financial claims.
- Potential influence on UK’s sanctions enforcement posture and litigation funding environment.
Economic Intelligence
- Judgment interest rate set at 5% above Bank of England base rate, higher than usual Commercial Court rate (base +1%).
- Reflects real-world borrowing costs for small businesses/private individuals, not just first-class commercial borrowers.
- Total interest awarded on judgment sum approximates £1.16 million.
- Highlights economic burden on defendants and cost of delayed payments in commercial disputes.
- Litigation funding market growth indicated by involvement of assignees and financial controllers’ borrowing data.
Strategic Recommendations
- Litigants and funders should prepare for higher interest awards reflecting realistic borrowing costs in UK commercial litigation.
- Monitor defendants’ financial health closely, especially where liquidation or administration status may impede recovery.
- Assess sanctions exposure rigorously in cross-border disputes involving UK entities.
- Consider early settlement strategies given potential for costly interest accrual and appeal delays.
- Leverage UK courts’ approach to interest rates and sanctions compliance in structuring future claims and defenses.
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**Source Notes:**
Case Title: *Sanctions Intelligence Digest*
Link: [https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/838.html](https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/838.html)