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Suing question:

I lent money to a relative(who had already borrowed as much as possible from financial institutions) on the basis of both a verbal promise to give me a generous interest rate and a written assurance of enhanced terms. The money was lent 4 and a half years ago to do up' a house prior to sale and was meant to be repaid within the year. After waiting the 4 and a half years, the house was sold(making significant clear profit but not as much as relative hoped for) and I had to chase after my relative for a further 3 months, after which I was paid initially only the principal sum, then 3 weeks later money equivalent to just under 2% per annum. I am seeking interest of approx 6.9% p.a. as I would have obtained between 5% and 6% in my long term deposit account. Do I have a case? I am resident in Northern Ireland. My relative resides in Bath, England.

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Responses:

Daniel Stanton

Daniel Stanton's response

You would need to consider what legal system applies to the contract. It would usually depend where the contract was made, unless you agreed otherwise. If it was made in England and Wales, we can help (see below). If it was made in Northern Ireland, you may need to seek legal representation locally. This is just a general rule and you would need to explain exactly what happened on the formation of the contract.

Your main issue will be evidence, essentially 'proving' what deal was done in relation to interest. If you didn't agree anything specific (other than a vague reference to interest) then you may have difficulties claiming a specific sum, as the two of you will be arguing that whilst 2% is less than you were getting, it is rather more than the 0.5% base rate. If you had sued for the money after a year when it was due to be repaid and obtained judgment for the whole amount, the Court could have awarded interest in its judgment, which I think from recollection would be more than 2%, but I am not sure what bearing that would have on your chances of success and I'd have to investigate further.

This response can only ever give a general idea and I'm sure you will appreciate that without looking at all the facts my response cannot constitute full and complete legal advice that takes everything into account. We would be happy to assist and take further instructions to act for you if you wish.