2010-UNAT-082

2010-UNAT-082, Castelli

UNAT Held or UNDT Pronouncements

UNAT held that UNDT did not exceed its competence in ordering the payment of interest from the due date of the relocation grant, but that UNDT had erred in setting the interest rate at 8 per cent. UNAT held that both UNDT and UNAT must have the power to award interest in the normal course of ordering compensation. UNAT affirmed the UNDT judgment and Order No. 30 to the extent that UNDT awarded interest on the relocation grant and replaced the interest rate of 8 per cent with the United States prime rate applicable on 4 May 2008 (5 per cent).

Decision Contested or Judgment/Order Appealed

The Applicant contested the decision not to pay him a relocation grant. UNDT found for the Applicant, a decision which was upheld by UNAT in judgment No. 2010-UNAT-037. Subsequently, in judgment No. UNDT/2010/011 and Order No. 30 (NY/2010), UNDT granted a request for payment of interest on the relocation grant at a rate of 8 per cent per annum from the due date of the relocation grant until the date of payment.

Legal Principle(s)

The absence of an express power to award interest in the UNDT Statute is not decisive. The award of interest by the tribunals is necessary to ensure that payments to staff are made by the Organisation. Both UNDT and UNAT must have the power to award interest in the normal course of ordering compensation.

Outcome

Appeal dismissed on merits

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Full Judgment

Applicants/Appellants

Castelli

Entity

Case Number(s)

Tribunal

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