The case of Blacklion Law LLP v Amira Nature Foods Limited & Anor provides a stark reminder to paying parties to make payments on account of costs to keep interest to a minimum.
The claim centres around a breach of contract dispute in respect of two contracts of retainer entered into by the parties. Each retainer was entered into in writing, and dated 2 November 2016 and 3 May 2017 respectively. The first of which was a general retainer. The second retainer was in connection with a finance transaction, known as Project Avatar.
On 8 October 2020, the Claimant applied for summary judgment in relation to the claims under both retainers. On 15 February 2021, Deputy Master Nurse gave summary judgment to the Claimant on the claim under the general retainer, for a sum to be assessed.
Subsequently, on 8 April 2022, Costs Judge Leonard assessed the sum due to the Claimant as £65,000.00, interest was calculated in the sum of £83,000.00, together with an award of costs of the assessment in the sum of £37,000.00. A total sum of £185,000.00.
The staggering amount of interest owed in this case highlights the importance of stopping interest running at the earliest opportunity and making early payments wherever possible.
If you have any questions regarding this summary, please do not hesitate to contact Emma Robson here.