Legal Cost Specialists

Interest on costs

CPR 44.2(6)(g) states:

“The orders which the court may make under this rule include an order that a party must pay interest on costs from or until a certain date, including a date before judgment.”

However, the Senior Courts Costs Office Guide 2013 correctly advises:

“The power to order interest to run from a date other than the date of judgment has, as at the date of preparing this guide, been found to be ultra vires in the county court until the Treasury takes certain steps to validate it. For the time being, in county court cases, interest on costs (other than the costs of assessment) will always run from the date of judgment.”

9 thoughts on “Interest on costs”

  1. Question – Why do solicitors automatically take the 8% interest for themselves. Why do unpaid disbursements not attract interest on their own invoices and the invoice is shared between solicitors, engineers, medical experts and non qualified cost draftsman.

    I would be interested to other peoples views…

  2. terms and conditions – the dibs are costs. therefore sols can claim interest

    the experts terms etc generally dont provide for interest. if they push the point I am sure they would lose instructions. Lets be fair, irrespective of DA outcomes they insist on full payment

  3. abcde @ 8.22 am – would this be the same firm that suggested to me in points of dispute that travelling time should be at two-thirds of the charging rate ? I know that I am getting on a bit, but I thought that I had gone back in time to pre-CPR. My wife would have been pleased as I weighed a lot less then…………..

  4. Actually the costs are the client’s, in theory interest is therefore the client’s unless provided for otherwise in retainer.

  5. Between businesses there does not have to be a term that interest will be added if an invoice remains unpaid. After 30 days 8% plus base rate can be added together with a penalty of £40 for every invoice to cover your accounting charges. Obviously the client will go elsewhere. In my case it worked even down to the 5 £10 invoices

  6. Agree with Anonymous.

    Also, interesting that the standard Law Society CFA doesn’t actually give the Claimant an express liability for interest… doesn’t that make recovery of interest a breach of the indemnity principle?

  7. If the Treasury has still not sorted this out post Motto and the court has no power to vary interest in the county court, does this lack of power equally apply to the court’s powers to limit interest for delay under CPR r.47.8 and r.47.14?

    It has not stopped Costs Judges reducing interest in practice but the receiving party have never raised the point so far.

  8. The boys at compass law (quindell) won’t be bothered either way. They sold company for 17p a share and got 80 million shares in quindell. Now check quindell share price!!! There are 5 very happy directors at compass law right now!!!

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