News & Analysis as of

Compound Interest

Gray Reed

No Compound Interest on Unpaid Royalties Under Texas Oil and Gas Lease

Gray Reed on

It’s not exactly Deuteronomy 23:19, but the Supreme Court of Texas has an opinion about interest. They don’t like it if it’s compounded. Samson Exploration LLC v. Bordages addressed interest to be charged on unpaid royalties...more

BCLP

Financing losses and interest - simple pleasures or compounding the misery?

BCLP on

It has long been a mystery to economists, accountants and business people why lawyers have regard to simple interest in commercial cases, in circumstances where companies generally do not (and cannot) borrow money on a simple...more

Skadden, Arps, Slate, Meagher & Flom LLP

UK Class Actions Update: Merricks Secures Uncontested CPO, But the Competition Appeal Tribunal Shows It Retains Significant Teeth...

After protracted challenges to class certification status, in Merricks v Mastercard the U.K. Competition Appeal Tribunal (CAT) granted its first collective proceedings order (CPO). The claim remains huge, comprising 46.2...more

Smart & Biggar

FCA upholds reconsideration decision maintaining $100M+ award against Apotex for cefaclor patent infringement

Smart & Biggar on

Update: On September 28, 2021, Apotex applied to the Supreme Court of Canada for leave to appeal (Docket No. 39851).  On July 23, 2021, the Federal Court of Appeal (FCA) dismissed Apotex’s appeal of the Federal Court’s (FC)...more

Allen Matkins

LIBOR Meets SOFR

Allen Matkins on

In our first client alert about LIBOR’s passing, “LIBOR”s Long Good-Bye” (the First Alert), we suggested that borrowers of U.S. Dollars prepare themselves for the end of the London Interbank Offered-Rate (USD LIBOR), by...more

Carlton Fields

Eleventh Circuit Vacates Compound Interest Award and Directs Trial Court to Recalculate Simple Interest Under Georgia Law

Carlton Fields on

In this action, Caradigm USA, a computer software company, brought a breach of contract action against health care provider PruittHealth Inc. in the U.S. District Court for the Northern District of Georgia, alleging that...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Late Penalties on Loan Payments in Arkansas – What's the Rule?

A frequently asked question in the lending community is whether there is an established amount regarding the maximum late fee that can be charged for a late payment made on a loan in Arkansas. Unfortunately, the answer to...more

Carlton Fields

Clarity on Application of California Usury Law: Insurers Not Subject to Compound Interest Limitations

Carlton Fields on

The California Supreme Court recently handed Northwestern Mutual Life Insurance Co. a decisive victory in a putative class action challenging the insurer’s assessment of compound interest on policy loans, holding that...more

Seyfarth Shaw LLP

The Six Investment Principles To Apply To Win In Litigation

Seyfarth Shaw LLP on

At first blush, time-honoured investment principles and the principles to be applied in getting good legal outcomes seem worlds apart. But after practicing law for eighteen years, and observing the financial markets, I have...more

Allen Matkins

Supreme Court: 1934 Amendment Repeals 1918 Limitation On Compound Interest

Allen Matkins on

The same year that the Great War ended, the voters of California approved an initiative measure governing allowable interest rates. This initiative remains uncodified but West Publisher designates these statutes as Civil Code...more

White & Case LLP

English Court of Appeal slashes UK's first cartel follow-on antitrust damages award and emphasises claimants' burden to prove...

White & Case LLP on

In BritNed v ABB, the English Court of Appeal substantially reduced the UK's first award of damages in a so-called cartel damages claim brought for breach of European competition law. In so doing, the Court rejected calls for...more

White & Case LLP

LIBOR and the transition to SONIA: compounding the problem?

White & Case LLP on

In 2012, the Wheatley Review recommended reform rather than replacement of LIBOR, on the basis that a transition to a new benchmark would pose an unacceptably high risk of financial instability. Reform came in the form of a...more

Smart & Biggar

FCA overturns cefaclor damages decision on prejudgment interest issue, provides guidance on NIA defence

Smart & Biggar on

On November 23, 2018, the Federal Court of Appeal (FCA) allowed in part Apotex’s appeal of a decision awarding Eli Lilly over $100 million for Apotex’s infringement of eight process patents related to the antibiotic cefaclor:...more

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