LEGAL PRINCIPLE: CIVIL PROCEDURE – Award of Interest – Basis for Claim
PRINCIPLE STATEMENT
Interest may be claimed as a right where it is contemplated by agreement between the parties, under mercantile custom, or under a principle of equity such as breach of a fiduciary relationship; where interest is being claimed as a matter of right, the proper practice is to claim entitlement to it on the Writ and plead facts which show such entitlement.
RATIO DECIDENDI (SOURCE)
"Interest may be claimed as a right where it is contemplated by agreement between the parties, or under a merchantile custom or under a principle of equity such as breach of a fiduciary relationship ... Where interest is being claimed as a matter of right, the proper practice is to claim entitlement to it on the Writ and plead facts which show such an entitlement ..."
EXPLANATION / SCOPE
Interest is not automatically awarded—it must be claimed and justified. Interest as of right arises from: (1) Contractual agreement—express or implied contract terms providing for interest; (2) Mercantile custom—established commercial practices making interest payable; (3) Equitable principles—situations like breach of fiduciary duty where equity requires interest. Procedural requirements: interest must be specifically claimed in the Writ, and facts establishing entitlement must be pleaded (the agreement, custom, or equitable ground). This differs from discretionary interest (court’s discretion to award interest on judgment debts under procedural rules). The principle requires: clear identification of interest basis, proper pleading of supporting facts, and proof at trial. Failure to claim or plead interest properly may result in denial even if substantively entitled