Interest on legal expenses and victim expenses.

[Rico]

Hi Folks,

If one pays for a solicitor's service with a credit card can the interest accrued on the card be added to a claim for expenses?

In my case, I've had to wait more than 12 years. I'm still under Scottish Law at the moment but it would be interesting to hear how the English deal with this particular problem.

Another question I have is whether a victim can claim any expenses either as a client or an LiP. For example the payment of a private investigator to find a key witness.

Cheers,

Rico

[Amethyst]

Re: Interest on legal expenses and victim expenses.

Moved to right forum and tag for [MENTION=87380]Diana M[/MENTION]; [MENTION=551]pt2537[/MENTION] , [MENTION=7765]Joanna C[/MENTION];

[Openlaw15]

Re: Interest on legal expenses and victim expenses.

Hi Folks,

If one pays for a solicitor's service with a credit card can the interest accrued on the card be added to a claim for expenses?

In my case, I've had to wait more than 12 years. I'm still under Scottish Law at the moment but it would be interesting to hear how the English deal with this particular problem.

Another question I have is whether a victim can claim any expenses either as a client or an LiP. For example the payment of a private investigator to find a key witness.

Cheers,

Rico

Legal costs' is a broad term and such claims usually means the winning party - 'following the event' - receives their lawyers' costs. If it is a tort type claim for damages, then lots of things technically can be claimed for. The credit card is different potentially as it relates to a means to pay for lawyers fees and not necessary an expense incurred, which relates to the case. I suppose the argument here is why should one person who pays cash, or by debit card, or bank transfers to a lawyer, be any different for a person who chooses to pay by credit card. In this country, England, the LiP can only claim per hour at £18, as far as I understand. However, in principal an LiP can claim for costs, I believe not more than 75% of the qualified legal professional's costs. There is a case where a party used a retired policeman as a private investigator and I believe this was an acceptable cost. It's whether it's reasonable and proportionate: CPR 44, mainly. It was a civil case but apparently applies to criminal proceedings also, I say this because you use the term 'victim.'

[Diana M]

Re: Interest on legal expenses and victim expenses.

If one pays for a solicitor's service with a credit card can the interest accrued on the card be added to a claim for expenses?

In my case, I've had to wait more than 12 years. I'm still under Scottish Law at the moment but it would be interesting to hear how the English deal with this particular problem.

Hello Rico, your question is a tad hypothetical.

Can you say whether the issue relates to a solicitor who was instructed by you to deal with a private matter (such as a Will, conveyancing, divorce etc)?

Or do these costs relate to a Costs Order as a result of litigation which you have paid by credit card via your solicitor?

You say "I have had to wait 12 years" does that imply you are a solicitor in Scotland waiting for payment from a client?

More details please

(Scottish CPRs differ from English CPRs https://www.scotcourts.gov.uk/rules-...rocedure-rules )

Di

[Rico]

Re: Interest on legal expenses and victim expenses.

Thanks for the replies.

The enquiry relates to a cost order in favour of the victim. Legal expenses having been funded by cash advances from credit cards.

I'm a client/LiP in Scotland seeking to maximise an expense claim.

The solicitor responsible for submitting my claim doesn't seem comfortable asking for the interest that has been incurred on expenses these past 12 years. Nor does he believe an LiP or his client is entitled to any of their own expenses.

The problem seems to be that he is terrified that the auditor may take a dim view and strike out the whole claim if he asks! This wouldn't be good as he is still owed at least £20K!

The claim is currently £68K. Just servicing the interest on that figure has cost over £200K. If it had been allowed to accumulate we'd be looking at a debt of over £1 million.

This is far from insignificant and I'm surprised there doesn't seem to have been any rules set out for these situations.

It wasn't a choice to pay with credit cards. It was the only credit available, having had my creditworthiness illegally annihilated and been prevented from buying a family home while house prices were rocketing.

Cheers,

Rico.

[Rico]

Re: Interest on legal expenses and victim expenses.

This discusses the issue a bit:

http://www.gov.scot/Publications/2013/10/8023/7

Crazy that the recommendation is for interest to run only after an account is lodged.

Interest should run from the date the expense is incurred. Common sense lacking as usual.

The law has prevented us lodging an account in 2004 while litigation is ongoing and the bank have been perverting justice ever since.

Cheers,

Rico.

[Rico]

Re: Interest on legal expenses and victim expenses.

There's this too....

From attached document

"Judicial expenses are necessary to assist in achieving equality of arms and to balance the pursuer against the defenders who may have greater resources available to them."

"..until interest becomes recoverable on all outlays from date of payment, it will continue to quietly contribute to the shortfall between judicial expenses and actual cost of litigation. "

Working on it.

Cheers,

Rico.