Bill Gibson puts matters of interest under the spotlight in his special NLJ series on costs
A right to interest arises in several ways and the whole subject of interest is an area of practice which can frequently cause confusion. As between solicitor and client, interest is only a real issue if the client fails to pay a bill within the time required in the terms and conditions or when client money is held on account.
Non-contentious matters
In non-contentious business (which can include potential litigation if no proceedings are issued, as well as business in many tribunals) the position is fairly straightforward. A formal non-contentious business agreement which complies with the requirements of s 57 of the Solicitors Act 1974 (SA 1974), signed by both the solicitor and the client, and which includes specific provisions for interest will leave a client with no cause for complaint if late payment of the bill costs him extra. The rate of interest should be
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