Interest on costs
Interest on costs
I turn now to consider the question of interest on costs. CPR rule 44.2(6)(g) provides that the court may order “interest on costs from or until a certain date, including a date before judgment”. In Involnert Ltd v Aprilgrange Ltd [2015] EWHC 2834 (Comm), [7], Leggatt J commented that
“This power is now routinely exercised when an order for costs is made following a trial to award interest at a commercial rate from the dates when the costs were incurred until the date when interest becomes payable under the Judgments Act.”
The respondents ask for interest at 2% above bank base rate from the dates on which they paid the invoices for their legal costs. Julian says that where a costs schedule is inflated or disproportionate it would be inappropriate to order interest on costs. I do not agree. Interest will be paid on the costs actually allowed on detailed assessment, not on those claimed in the costs schedule prepared for summary assessment. I will order interest at 2% above bank base rate (which I consider to be an appropriate rate) from the dates on which the respondents paid the invoices for their legal costs until judgment.
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