Interest cover meaning

This Checklist on making a Part 36 offer identifies the key factors that should be considered when drafting a Part 36 offer. Consideration What a Part 36 offer can be made in relation to You may frame a Part 36 offer to cover the entirety of the claim, a defined part, or a particular issue. It can likewise address a counterclaim or any additional claim, and it may extend to an appeal or cross-appeal arising from a trial judgment. However, a Part 36 offer is not available for an appeal against an interlocutory ruling. Guidance When to make a Part 36 offer An offer under Part 36 can be served at any point, whether before proceedings are issued or once they are underway (CPR 36.7(1)). Where a matter proceeds to appeal, a new Part 36 offer should be advanced because the Part 36 consequences attach only to the costs of the proceedings in which the offer is made, and do not extend to the...

Checklist This checklist sets out the matters a practitioner ought to weigh when assessing general damages. It reviews various heads of damage, such as pain, suffering and loss of amenity (PSLA), Smith v Manchester awards, loss of congenial employment, loss of use, holiday disruption, harm to relationships, reduced marriage prospects, aggravated damages, unnecessary treatment, fatal accidents, and interest. PSLA Pain and suffering reflect the claimant’s personal, subjective experience. Loss of amenity denotes a diminished capacity to carry out ordinary activities. Damages can be granted for physical and/or psychiatric injury and cover distress in the past, present, and future. There is no precise formula for valuation in these assessments of such claims...

When carrying out due diligence on the purchase of a head lease, it is vital to identify who carries the obligation to insure, on what conditions, and whether those terms align with the insurance provisions in any occupational leases. The head-lease tenant, as the holder of a valuable interest, should also have a right to the insurance monies if the property is damaged; without that, the asset’s value and prospects for disposal or funding can be adversely affected. What are the key issues to consider in due diligence if the tenant insures? Where the tenant must keep the property in repair, the head lease may require the tenant to arrange cover, either in the tenant’s own name or in the joint names of landlord and tenant. Inadequate insurance can leave the tenant without the resources to reinstate following loss or destruction caused by an insured risk. If the lease places the duty to insure on the tenant, the buyer must confirm the policy satisfies...

In this issue: Key DR developments Claims and remedies Costs and funding Litigation Case management Evidence and disclosure ADR Scottish Dispute Resolution New content Dates for your diary Useful information Daily and weekly news alerts Dispute Resolution Highlights 2025/2026 Key DR developments Alternative dispute resolution European Parliament adopts new rules to modernise out-of-court dispute resolution for consumers The European Parliament has approved refreshed measures to enhance consumer out-of-court complaint handling, updating the EU’s ADR framework for the digital landscape and cross-border disputes. The reforms delineate ADR’s reach to cover matters arising both before and after contractual agreements, and in specified circumstances enable involvement by traders from third countries. The directive will come into force 20 days following publication and will begin to apply 32 months thereafter. For more, see: Parliament adopts new rules to modernise out-of-court dispute resolution for consumers—LNB News 16/12/2025 Court information HMCTS update hearing...

PI & Clinical Negligence weekly highlights—15 February 2024 In this issue: Road traffic accidents Clinical negligence Costs Court and the legal profession Other PI and clinical negligence news Daily and weekly news alerts Useful information New Q&As Road traffic accidents Pure economic loss and remoteness In Armstead v Royal & Sun Alliance Insurance Company Ltd [2024] UKSC 6, the Supreme Court held that a bailee’s possessory interest in goods is sufficient to found a claim against a third party whose negligence damages those goods. The appeal succeeded: a car-hirer was entitled to sue the negligent third party in tort to recover the contractual daily loss-of-use sum owed to the vehicle owner (the bailor, hire company) arising from the damage. The court also issued succinct guidance on core principles governing negligence claims for harm to tangible property, and on the limits of remoteness. Further, the Supreme Court confirmed that once a claimant has shown that...

In this issue: Key PI and Clinical negligence developments Civil procedure rule committee minutes Psychiatric and occupational stress Injuries caused by animals Claims involving a child Claims involving a fatality Costs and funding Other PI and Clinical negligence news LexTalk® PI & Clinical Negligence: a Lexis®Nexis community Daily and weekly news alerts LexisNexis® Webinars Useful information Key PI and Clinical negligence developments MoJ announces reduction in CFO’s interest rates The Ministry of Justice (MoJ) has confirmed reduced interest rates for the Courts Funds Office (CFO) special and basic accounts. The special account rate moves from 4.75% to 4.50%, while the basic account rate shifts from 3.56% to 3.38%. Effective from 3 March 2025, the revision follows the Bank of England’s base rate cut on 6 February 2025 and is intended to ensure the CFO Service can continue to cover operational costs. See: LNB News 04/03/2025 38...

This Practice Note explores the principal legal terms typical of social housing finance and what distinguishes them from financing in other sectors. It focuses on standard financial covenants and other sector‑specific provisions, including events of default, together with terms linked to the availability of long‑term fixed rate interest options. For more on social housing finance transactions, see Practice Notes: Social housing entities entering into finance transactions Key deal structures in social housing finance Taking and enforcing security from social housing entities This Practice Note concentrates solely on private not‑for‑profit providers of social housing registered in England (referred to as ‘RPs’), as they comprise the vast majority of private debt finance raised by housing associations to date. It does not cover providers registered in Wales. Financial covenants—introduction The principal financial covenants in social housing finance are: loan to value gearing interest cover (less commonly) net rental income cover from charged properties Loan...

Scope of this note Once security has been properly constituted, it is effective as between the security provider and the secured party. It is not, however, automatically binding on third parties such as a liquidator or an administrator of the security provider. In many situations, additional steps must be taken to perfect the security. Perfection is the process by which security is made enforceable against certain third parties (though not necessarily all). The term is sometimes used more widely to cover measures that improve or safeguard a creditor’s position, eg by securing a legal interest or ensuring the priority of its security. For information on the third parties that may not be bound by security that has been perfected, see The difference between perfection and priority below...

Defending a claim of copyright infringement In most copyright infringement cases, a defendant will first challenge the claimant’s position on copyright itself, contending either that no copyright exists in the work identified, or that any subsisting copyright is not owned by the claimant (and sometimes both). The next step is often to assert that, even assuming copyright does subsist, there has been no infringement. This may include arguing that the original work and the accused material lack sufficient similarity, or adducing evidence that the disputed work was created independently, i.e. that no copying occurred. Finally, there are specific statutory carve-outs to infringement, predominantly set out in the Copyright, Designs and Patents Act 1988 (CDPA 1988). These are referred to as permitted acts. The range of permitted acts applying to copyright is extensive, with several also relevant to database right. Where other legal claims arise, such as breach of confidence, the permitted acts defence will not cover those causes of action. Permitted acts can be invoked in relation to...

FORTHCOMING CHANGE : The Renters’ Rights Act 2025 was granted Royal Assent on 27 October 2025. For advice on the Act’s effect on residential tenancies in England, refer to Practice Note: Renters' Rights Act 2025—key provisions. Use this schedule to gather information on occupiers, occupation status, critical dates, notices to be issued, and principal points when planning a vacant possession strategy for a redevelopment. This Precedent is supplied in Excel format and can also be accessed via the link on this page. Note that the schedule has been created in Excel and therefore it cannot be downloaded into Word. Vacant Possession strategy—drafting notes If the development contains more than one freehold or superior leasehold interest, you may insert extra headings to divide the schedule into further sections where appropriate. Colour code: Sample colour coding has been applied to the first few rows as an example. Landlord: The named landlord should cover both: the direct landlord the...

The following table sets out a variety of conflict and confidentiality scenarios we might encounter. It is intended to guide decisions on whether we may act and, if so, which measures we should adopt. It mirrors the obligations in the SRA Code of Conduct for Solicitors, RELs and RFLs (Code for Solicitors) and the SRA Code of Conduct for Firms (Code for Firms) regarding conflicts of interest and the protection of confidential information belonging to current or former clients. It does not cover clashes with the firm’s commercial interests or duties of confidentiality owed to non-clients, eg under a confidentiality agreement with a third party. When we evaluate a potential conflict or confidentiality concern, one end of the spectrum is that we cannot act at all, and at the other there are no conflict or confidentiality issues and no information safeguards are required—in between, our ability to act turns on factors such as SRA exceptions, client consent and the use of information barriers...

Thank you for instructing us to act on [ insert description of matter ]. We have sent you, under separate cover, a [ client care OR engagement ] letter along with our terms of business. This letter sets out our professional duties concerning conflicts of interest and confidentiality, and asks for your informed consent before we continue to act. Professional obligations We are authorised and regulated by the Solicitors Regulation Authority (SRA). In line with those duties, we cannot act where there is a conflict—or a significant risk of conflict—between our separate obligations to act in the best interests of two or more clients in the same, or a related, matter, unless one of two limited exceptions applies. These exceptions apply where our clients: have a substantially common interest in relation to the matter, or a particular aspect of it, or are competing for the same objective Is there an actual or potential conflict of interest? ...

Service charges Service charges are imposed by landlords to recoup the expenditure they incur in delivering services to a building. The precise manner in which the service charge is organised and administered is defined in the tenant’s lease or tenancy agreement. Usually, the charge meets the expense of matters such as general maintenance and repairs, insurance of the building and, where services are supplied, central heating, lifts, porters, lighting, and cleaning of common areas. The charges may additionally cover management costs borne by the landlord or a professional managing agent, together with contributions made to a reserve fund. Relationship of landlord and tenant The landlord and tenant relationship stems from medieval land law and was at first a matter solely of contract in form. Nevertheless, from very early on, the agreement conferred on the tenant an estate or proprietary interest in the land whilst retaining, and not discarding, any of its essential contractual attributes as such...

What is pre-planning restrictive covenant insurance? Restrictive covenant insurance safeguards people holding an interest in land that is burdened or encumbered by a restrictive covenant. It generally also covers losses including: damages awarded against the insured expenses to modify or demolish a building or other structures to comply with a covenant abortive works costs legal costs This cover can be arranged before planning consent has been obtained for a development where the intended development site is burdened by restrictive covenants. That includes situations where planning permission has not yet been obtained. When is it appropriate to take out a pre-planning restrictive covenant insurance policy? Clearly, if a restrictive covenant looks likely to affect the proposed development, all efforts should be made to resolve matters at the earliest opportunity. Every effort should be made to iron out issues as early as possible...

Various statutes govern the exercise of trustee powers. A range of statutes regulates how trustee powers are exercised. For the purposes of this response, it is taken that the trust contains no special or unusual terms or purposes. In those circumstances, the Trustee Act 1925 (TA 1925) and the Trustee Act 2000 (TrA 2000) are likely to be the principal statutory frameworks. As a general rule, there will be no more than four trustees (TA 1925, s 34), and trustees are under a duty to reach decisions that accord with the trust’s purposes and powers. They must act in good faith and eschew conflicts of interest. Decisions should be taken on an informed footing, and the usual position for private trusts (as opposed to, for instance, charitable trusts) is that trustees are required to act unanimously rather than by majority...