Another significant change brought about by Act of Sederunt (Rules of the Court of Session, Sheriff Appeal Court Rules and Ordinary Cause Rules Amendment) (Taxation of Judicial Expenses) 2019 was the introduction of rules in the Court of Session and Sheriff Court providing for interest on expenses. Until the introduction of these rules, there was no specific provision to enable the courts to award interest on expenses. Although the courts always had a discretion to deal with expenses as they saw fit, it was not the norm for interest to be awarded on judicial expenses.

The Sheriff Court rule provides:

• (1) Paragraph (2) applies where the sheriff grants decree for payment of—

  • (a) expenses as taxed; and

  • (b) interest thereon.

• (2) Without prejudice to the sheriff’s other powers in relation to interest, the decree pronounced may require the party decerned against to pay interest on the taxed expenses, or any part thereof, from a date no earlier than 28 days after the date on which the account of expenses was lodged.

The Court of Session rule provides:

• (1) At any time before extract of a decree for payment of expenses as taxed by the Auditor the court may, on the application of the party to whom expenses are payable, grant decree against the party decerned against for payment of interest on the taxed expenses, or any part thereof, from a date no earlier than 28 days after the date on which the account of expenses was lodged.

• (2) Paragraph (1) is without prejudice to the court’s other powers in relation to expenses.

The Sheriff Court rule does not make specific reference to the award of interest following on from an application by the entitled party but it is implicit that is the case. The timing of the award of interest in the sheriff court rule must be at the time the decree for expenses is made by the court. The position in the Court of Session is different as the application for interest can be made by the entitled party at any time prior to the decree for payment of expenses as taxed being extracted.