Facts
The case concerns a legal dispute between the X. Reinsurance Company (Plaintiff) and G. (Defendant) regarding the repayment of a loan. [G.] terminated his employment with the X. Reinsurance Company, whereupon the company demanded the repayment of the loan. As [G.] did not pay, the X. Reinsurance Company sued for payment of the loan plus interest.
The lower instances had essentially upheld the claim and obliged the Defendant to pay CHF 1,000,000.-- plus interest at 7.75% from March 1, 1991 to June 30, 1993 and at 5.25% from July 1, 1993. The Defendant appealed against this judgment to the Federal Supreme Court.
Considerations
The Federal Supreme Court states that the damages for delay under Art. 106 CO are only to be compensated in addition to the statutory default interest under Art. 104 CO to the extent that they exceed these. However, the lower instances had improperly mixed the default interest and the damages for delay by applying a higher achievable return for certain periods of delay, while in other periods relying on the statutory default interest.
Correctly, the entire damages for delay suffered up to the time of the judgment must be determined, and the contractually…