Sanction for non-compliance - defendant when the claimant has been awarded a sum

• A. An order that the party at fault pays the costs of the proceedings, or part of the costs of the other party or parties
• B. An order that the party at fault pay those costs on an indemnity basis
• C. If the party at fault is a claimant who has been awarded a sum, an order depriving that party of interest on that sum for a specified period, and/or awarding interest at a lower rate than would otherwise have been awarded
• D. If the party at fault is a defendant, and the claimant has been awarded a sum, an order awarding interest on that sum for a specified period at a higher rate, not exceeding 10% above base rate

Answer: (D)

When a defendant fails to comply with a court order to pay a sum awarded to the claimant, the court can impose a financial incentive for prompt payment by awarding interest on that sum. This sanction is specifically aimed at non-compliance by the party at fault and is structured so the rate can be higher than ordinary judgment-interest, up to base rate plus 10%, for a set period determined by the court. It serves to compensate the claimant for the delay and to deter future non-payment.

The other options relate to costs or to different treatment of interest in situations that don’t match the scenario of the defendant’s non-compliance with a monetary award. They do not describe the sanction of awarding heightened interest on the judgment sum to the claimant for a defined period.