A matter of interest

When a sum of money is being claimed in a court, it is usual to claim interest on that sum. But not everyone who has a claim for an amount of money, be it for compensation, restitution or a debt, is entitled as of right to claim interest. Understanding this will help you understand what you can do to increase the amount of interest that you may recover if you are making a claim or to minimise the amount of interest you may have to pay if a claim against you succeeds.

To understand why there is no automatic right to claim interest at a fixed rate or for a definite period, it helps to look at why courts usually award interest. Generally, there are two alternative reasons to award interest: