Interest-ing times at Hammonds

The former Hammonds partners who settled their profits dispute with the firm must be breathing a sigh of relief.

The former Hammonds partners who settled their profits dispute with the firm must be breathing a sigh of relief.

Hammonds is suing 14 former partners, who, if Hammonds gets its way, are getting poorer by the day. The firm is demanding the partners pay a daily interest rate in addition to the lump sum owed. See story.

When proceedings were issued on 11 June, Hammonds calculated that the total interest from all the former partners was £298,299. Since then interest has accumulated at a rate of £738 every day.

If the ex-partners were to pay back the £3m now, then the interest alone would come to a whopping £345,540 – or £24,700 per person. But are they going to cave in now? Are they heck.

Hammonds is likely to be hanging its dirty underwear out for the neighbours to view in the High Court in October, so by the time the judgment is handed down, interest could reach £395,734 – another 10 per cent on top of the amount Hammonds is suing for.

Well, it’s a novel way for the firm to generate revenue.

NB. Lawyer News Daily’s statistician was on holiday and The Lawyer apologises for any discrepancies in interest rates.