BERMUDA Law and Practice Contributed by: Michael Hanson, Keith Robinson, Sam Stevens and Kyle Masters, Carey Olsen
9.3 Pre-Judgment and Post-Judgment Interest A Bermuda court will award both pre- and post-judg- ment interest. Pre-judgment interest is normally awarded on a simple basis and is calculated by reference to the date the cause of action arose (as the starting point) and the date of judgment (as the ending point). Parties to litigation in Bermuda may be awarded post- judgment interest at the rate of 3.5% per annum under the Interest and Credit Charges (Regulation) Act 1975. Such interest can be awarded at the discretion of the court, on a simple or compound basis, and it normally accrues from the date of judgment until payment of the judgment sum. 9.4 Enforcement Mechanisms of a Domestic Judgment Writ of Fieri Facias There are various ways in which a domestic judgment can be enforced provided the judgment is for a sum of money payable on a certain date. One method is by way of a writ of fieri facias, which is a direction to the court-appointed bailiff to seize the property of the judgment debtor in execution of the judgment to satisfy the sum of the judgment debt, together with interest and the costs of execution. This will include the bailiff’s fees and costs. The Rules expressly pro- vide that all writs of execution, including a writ of fieri facias, are enforceable as against choses in action. Charge Over Property A money judgment entered against a party in the Supreme Court may be entered as a charge over that party’s real property. An application for the appoint- ment of a receiver over that property can be made. Provided the court is satisfied that it is reasonable to make such an appointment, taking into account the amount of the judgment debt owed and the costs of appointing the receiver, upon such an order all debts due to the judgment debtor would be paid to the receiver. Sequestration of Property There is also the option of sequestration of the prop- erty of a non-compliant judgment debtor on the basis
that failure to comply with a judgment is a contempt of court. Where the judgment debtor is a body corporate, an order can be made against a director. Garnishee Application The garnishment of third-party debts owed to a judg- ment debtor is a well-recognised enforcement proce- dure in Bermuda. A garnishee order will only be grant- ed in respect of a debt that is due or accruing due to a judgment debtor as at the date a final garnishee order is granted – future debts cannot be garnished. A garnishee order creates an equitable charge over the third-party debt (rather than an express transfer of the property in the debt to the judgment creditor) and binds the debt in the hands of the named garnishee. Receivers It is possible to apply to court to appoint a receiver by way of equitable execution to enforce a money judg- ment. A court-appointed receiver is a discretionary remedy that is generally only available where execu- tion at common law is either prevented or is imprac- ticable. In modern times, the court has followed the practice in many other common law jurisdictions and incrementally expanded the jurisdiction in line with established principles. There are many advantages to the appointment of a receiver by way of equita- ble execution, which is a remedy inherently capable of great flexibility. For example, unlike a garnishee order a receiver by way of equitable execution can be appointed by the court to collect future receipts from a defined asset belonging to the judgment debtor. Importantly, a receiver by way of equitable execution is an officer of the court, not an agent of the judgment creditor that sought their appointment (though in prac- tice the appointed receiver will usually look to work in collaboration with the judgment creditor in order to fulfil their mandate). 9.5 Enforcement of a Judgment From a Foreign Country eign Judgments under the Judgments (Reciprocal Enforcement) Act 1958 The Judgments (Reciprocal Enforcement) Act 1958 allows judgments for the payment of money from the superior courts of the UK and many other Common- wealth countries to be enforced in Bermuda by reg-
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