Description
Application for pre-judgment interest on disbursements paid by the claimants' solicitors pursuant to a credit agreement raising the issue of the appropriate rate to be applied.
Held: CPR 44.3(6)(g) provides the court with the power to make an order for payment of pre-judgment interest on costs. The rate of interest on costs is not fixed and is in the discretion of the court, taking into account all the circumstances of the case and bearing in mind the requirement to do justice as between the parties. Credit charges specified in a credit agreement provide only prima facie evidence of the cost in obtaining necessary credit, which can be displaced by evidence that charges are excessive.
In the present case, the 4% above base rate was not excessive or unreasonable: it was unlikely that the claimants would have unsecured borrowing at a more advantageous rate, and as such, it was appropriate to apply it.
