Bridging lender Montello says that a recent High Court decision has confirmed that borrowers that take out bridging finance to fund litigation expenses, can be entitled to recover the full interest rate paid by the borrower.
Previously interest costs on a judgement accrued at a ‘standard rate’ of 8%, however the High Couty decision last week now provides that a winning party to a lawsuit can be entitled to a full recovery of the interest they pay on any borrowings to fund the lawsuit, Montello argues.
Christian Faes, managing director of Montello, said: “As a bridging lender we always want to ensure that a borrower is borrowing from us for a viable commercial purpose – and we believe that commercial litigation is one such purpose.