Jet2 want to settle out of court - how much interest on claim is reasonable?

JoJo_Ack

Hi All
I currently have a claim going through the small claims track with a hearing date set for 29th Sep. Thanks to Vauban and all the information he has published on this forum I have been able to prepare what I think is a comprehensive bundle of documents and I'm all ready for court.
Today Jet2's solicitors Bird & Bird have contacted me by email offering to settle my claim out of court, without accepting liability. Their offer was 250 Euros each for myself and my husband at today's exchange rate plus the £35 court issue fee.

I rejected this offer on the basis that I believe a) they should use the exchange rate from the date when I submitted the original claim to Jet2 in March 2013 and b) they had offered no interest. I said I would accept a revised offer on this basis - I stated the exchange rate and asked for 8% interest for 923 days.

They have come back with the following:
We reject your claim for interest on the basis that this is a claim for fixed compensation under EU Regulation 261, and is thus not a claim for debt or damages under section 69 of the County Courts Act 1969. We are willing to offer you the sum of 4% from the date of issue of the claim form. We have also offered you the exchange rate as per your previous email of March 2013.
Interest at 4% from date of issue of the claim form (148 days) = £6.87

My 923 days at 8% came to £83.07

So my questions are
1. Should I hold out for 8%?
2. Should I insist on interest from the date of my first letter to Jet2?
3. Should I stand firm and 'see them in court' for the sake of £76.20 and a moral victory???

Thanks in advance

howticklediam

JoJo_Ack wrote: »

Hi All
I currently have a claim going through the small claims track with a hearing date set for 29th Sep. Thanks to Vauban and all the information he has published on this forum I have been able to prepare what I think is a comprehensive bundle of documents and I'm all ready for court.
Today Jet2's solicitors Bird & Bird have contacted me by email offering to settle my claim out of court, without accepting liability. Their offer was 250 Euros each for myself and my husband at today's exchange rate plus the £35 court issue fee.

I rejected this offer on the basis that I believe a) they should use the exchange rate from the date when I submitted the original claim to Jet2 in March 2013 and b) they had offered no interest. I said I would accept a revised offer on this basis - I stated the exchange rate and asked for 8% interest for 923 days.

They have come back with the following:
We reject your claim for interest on the basis that this is a claim for fixed compensation under EU Regulation 261, and is thus not a claim for debt or damages under section 69 of the County Courts Act 1969. We are willing to offer you the sum of 4% from the date of issue of the claim form. We have also offered you the exchange rate as per your previous email of March 2013.
Interest at 4% from date of issue of the claim form (148 days) = £6.87

My 923 days at 8% came to £83.07

So my questions are
1. Should I hold out for 8%?
2. Should I insist on interest from the date of my first letter to Jet2?
3. Should I stand firm and 'see them in court' for the sake of £76.20 and a moral victory???

Thanks in advance

I think only you can answer that question. Personally, Id say its a lot of hassle for £76 quid.

howticklediam

JoJo_Ack wrote: »

We reject your claim for interest on the basis that this is a claim for fixed compensation under EU Regulation 261, and is thus not a claim for debt or damages under section 69 of the County Courts Act 1969. We are willing to offer you the sum of 4% from the date of issue of the claim form. We have also offered you the exchange rate as per your previous email of March 2013.

That's an interesting take on it. You are entitled to interest. And if not, why are they offering 4%, wouldn't they offer nothing if they knew they didn't need to pay it.

SirGimpy

Actually, you probably are not entitled to interest.

Bircho

SirGimpy wrote: »

Actually, you probably are not entitled to interest.

I have obtained copies of two judgments that were issued against Monarch. In both cases, interest was awarded although the exchange rate used was that on the day of the judgments.

NoviceAngel

Shame this wasn't posted in the Jet2 thread, interest has been covered loads of times.

Take the money and run

christaitfife

Serious question (and not meant to be Provoking):
What is your purpose in holding out for the few extra pounds?
1. To punish the airline
2. Because you want as much money as possible
3. It is a fair valuation of the amount you have lost
4. Another reason

I have my views on the Eu ruling, but if it is answer 3 I would say hold out. If it is answer 1 or 2, this demonstrates why I dislike the ruling.

Take the money IMO.

Scruffywuffy

I had the same with Thomsons - about a week after they'd acknowledged and said they intended to defend the Claim, they called to settle. They didn't offer interest, and they rejected my exchange rate, using one that was more favourable to them.

On the basis that they were offering me around £36 each less than I had claimed (for 2 of us) I accepted their offer.

Although I think you probably are entitled to interest, if it goes to court, I'm not sure a court will look favourably on rejecting the offer on that basis.

SirGimpy

Bircho wrote: »

I have obtained copies of two judgments that were issued against Monarch. In both cases, interest was awarded although the exchange rate used was that on the day of the judgments.

And did Monarch argue that interest wasn't due? Because if not, your judgments are entirely irrelevant. And even if they did, those judgments are not binding and are probably wrong.

Bircho

SirGimpy wrote: »

And did Monarch argue that interest wasn't due? Because if not, your judgments are entirely irrelevant. And even if they did, those judgments are not binding and are probably wrong.

That bit I don't know. I do know they defended the cases and lost both.