Interest under a Final Costs Certificate

In a recent case costs due following part 36 acceptance were agreed in an all inclusive sum very close to assessment, and a Final Costs Certifiate was sealed showing (with the full agreement of the opponent) the correct net amount, so that subject to payment on day 14 the interest would match up with the agreed sum. The opponent then tried to pay the net sum only, and to claim that their liability was discharged. Our advice follows - 

What an infuriating and devious opponent!

If this continues, we should give her chapter and verse, which is –

The award of costs being a “deemed order” upon acceptance of a part 36 offer (CPR 36.10), the entitlement to interest arises under CPR 44.12 (2), which says –

“Interest payable pursuant to section 17 of the Judgments Act 1838² or section 74 of the County Courts Act 1984³ on the costs deemed to have been ordered under paragraph (1) shall begin to run from the date on which the event which gave rise to the entitlement to costs occurred.”

Interest therefore runs on the amount of the substantive costs from 19^th July 2011.

s.74 (3) CCA 1984 provides that –

“The payment of interest due under subsection (1) shall be enforceable as a sum payable under the judgment or order”

The amount of interest is set at 8% by The County Courts (Interest on Judgment Debts) Order 1991.

Notwithstanding that there was also an express agreement as to the fully inclusive amount (which one would hope that an Officer of the Court would consider herself bound by), the liability, scope and amount of interest that we have sought are all set by the Civil Procedure Rules, or by other primary or secondary legislation.

In short, it doesn’t really matter what argument she comes up with - the Final Costs Certificate (and the interest that accrues under it) are enforceable as a judgment debt and your client can simply send in the Bailiffs.

Update as at 15/10/12 - after three weeks of attempted evasion, interest was paid in full.