Judgment interest on costs—‘due’ means ‘payable’ (Deutsche Bank Ag v Sebastian Holdings Inc)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Dispute Resolution analysis: The Court of Appeal considered the application of section 24(2) of the Limitation Act 1980 with specific reference to the accrual of interest on costs, which are ordered to be subject to detailed assessment. The act states that no arrears of interest can be recovered after the expiration of a six-year period from the date on which the interest became due. It was found that, in this context, ‘due’ meant ‘payable’ and that the costs could not be deemed to be ‘payable’ until such time that the costs had been assessed and were enforceable. Written by Claire Kretzmann, costs lawyer at Paragon Costs Solutions.