A reminder of when you can start charging interest on unpaid costs:
- non-contentious: you may charge interest on the whole or outstanding
part of an unpaid bill from one month after delivery of the bill. This
assumes written notice has been given to the client of the right to
request a remuneration certificate and of the right to seek
assessment of the bill by the court (presumably you include that in
your standard terms and on the bill?);
- contentious: you can charge interest if (i) the right to charge interest
has been expressly reserved in your original retainer agreement; or (ii)
if the client has subsequently agreed to pay it in return for a
contractual consideration; or (iii) if you sue the client and claim
interest under s35A SCA 1981.
See note in [2007] LSG 8 February 35.
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March 2007 |