Executive Summary
- Henderson & Jones Ltd, as assignee, successfully claimed breach of confidence against Salica Investments Ltd and Dominic Perks, with judgment for £2,154,285 plus interest.
- The court addressed consequential matters including interest rates, validity of a Part 36 offer, costs, and appeal permission.
- Central to the judgment was the appropriate interest rate on the judgment sum, balancing commercial court norms and claimant’s characteristics as a small business/private individual.
- The court settled on 5% above Bank of England base rate as fair compensation for deprivation of funds.
Sanctions Highlights
- No direct sanctions imposed or discussed in the judgment.
- However, the case involves parties potentially subject to UK regulatory scrutiny given the commercial context and litigation funding.
- Sanctions implications flagged due to involvement of UK jurisdiction and commercial entities, relevant for compliance in cross-border financial disputes (matched: sdn).
Emerging Risks
- Litigation funding assignments may increase complexity in breach of confidence and commercial disputes.
- Interest rate disputes highlight risk of increased financial exposure for defendants in prolonged litigation.
- Defendants’ insolvency status (liquidation and administration of second and third defendants) raises risk of recovery challenges.
- Potential appeals could prolong resolution and increase costs.
Geopolitical Impact
- Case adjudicated in England and Wales High Court, reinforcing UK’s role as a key jurisdiction for commercial dispute resolution.
- Reflects UK courts’ nuanced approach to interest awards balancing commercial norms and claimant profiles.
- Highlights UK’s legal environment sensitivity to small business and individual claimant protections amid commercial litigation.
- No direct international geopolitical tensions noted, but UK’s regulatory and legal frameworks remain influential in global commercial disputes.
Economic Intelligence
- Judgment sum of £2.15 million plus interest (~£500k+) underscores significant financial stakes in breach of confidence claims.
- Interest rate set at 5% above base rate reflects borrowing costs for small businesses/private individuals, higher than typical 1% commercial court rate.
- Court’s reliance on Bank of England data and market borrowing rates signals economic realism in damage awards.
- Insolvency of some defendants may impact economic recovery and creditor risk.
Strategic Recommendations
- Litigants should carefully assess interest rate exposure in commercial claims, especially when claimants are small businesses or individuals.
- Early resolution efforts, including valid Part 36 offers, remain critical to limit costs and interest accrual.
- Monitor defendants’ financial health closely to evaluate enforceability of judgments.
- Legal teams should prepare for appeals on interest and costs issues in similar cases.
- Compliance teams should consider sanctions and regulatory risks in cross-border commercial disputes involving UK entities.
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**Source Notes:**
*Henderson & Jones Ltd v Salica Investments Ltd & Ors [2025] EWHC 838 (Comm)*
https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/838.txt