Court Procedures Rules 2006

In a proceeding for the recovery of money, including a debt or damages or the value of goods, the court may—

order that interest be included in the amount for which judgment is given—

at the rate it considers appropriate; and

on all or any part of the money; and

for all or any part of the period beginning on the day the cause of action arose and ending on the day before the day judgment is entered; or

order that a lump sum be included in the amount for which judgment is given instead of interest under paragraph (a).

However, the court must not order that interest be included, or that an amount be included in a lump sum instead of interest, for—

compensation in relation to liabilities incurred that do not carry interest as against the person claiming interest or claiming a lump sum instead of interest; or

compensation for loss or damage to be incurred or suffered after the day judgment is given; or

exemplary or punitive damages.

Subrule (4) applies if—

a proceeding is started for a debt or liquidated demand; and

payment of all or part of the debt or liquidated demand is made during the proceeding and before or without judgment being entered in relation to the debt or liquidated demand.

On application by a party to the proceeding, the court may order that interest be paid—

at the rate it considers appropriate on all or part of the amount paid; and

for all or any part of the period between the day the cause of action arose and the day of the payment.

Note Pt 6.2 (Applications in proceedings) applies to an application for an order under this subrule.

For subrule (1) (a), the court may set the rate of interest—

in accordance with the rate stated in the claim for relief; or

having regard to the rate of interest applying, from time to time, under schedule 2, part 2.1 (Interest up to judgment).

This rule does not—

authorise the giving of interest on interest awarded under this rule; and

apply in relation to any debt on which interest is payable as of right, whether by agreement or otherwise; and

affect damages recoverable for the dishonour of a bill of exchange.

In a proceeding for damages, the court must not order the payment of interest under this rule in relation to a period after the defendant offers (or first offers) an appropriate settlement amount to the plaintiff unless the special circumstances of the case justify the making of the order.

For subrule (7), if an amount is offered in settlement of the proceeding and the amount for which judgment is entered in the proceeding (including interest until the day of the offer) does not exceed the amount offered in settlement by more than 10%, the amount offered is an appropriate settlement amount.