281Interest on unpaid legal costs

281 Interest on unpaid legal costs (1) A law practice may charge interest on unpaid legal costs if the costs are unpaid for 30 days or longer after the day the practice gave a bill for the costs in accordance with this part. A law practice gives a client a bill for costs on 1 May 2008. The bill remains unpaid on 1 June 2008, that is, for longer than 30 days after the day the practice gave the client the bill. The law practice may charge interest on those costs for the period that the costs remain unpaid, beginning on 2 May 2008. (2) A law practice may also charge interest on unpaid legal costs in accordance with a costs agreement. (3) A law practice must not charge interest on unpaid legal costs under subsection (1) or (2) unless the bill for the costs states— (a) that interest is payable on unpaid costs; and (b) the rate of interest; and (c) for interest payable in accordance with a costs agreement—that the interest is payable under the agreement. (4) Interest charged under subsection (1) or (2) must not exceed— (a) if a rate is prescribed by regulation—that rate; or (b) if a rate is not prescribed by regulation—the rate applying under the Court Procedures Rules 2006, schedule 2, part 2.2 (Interest after judgment). (5) Subsection (1) applies to a bill of costs given in the form of a lump sum bill even if the client later requests or is later given an itemised bill. Note A person may request an itemised bill not later than 90 days after the person receives a lump sum bill (see s 292).