Description
Two brothers built up a pharmacy business. A dispute arose as to the ownership of the assets. In 2004 they instructed solicitors to sell five pharmacies and retain the net proceeds in an interest-earning client account until further instruction. A compromise of the dispute between the brothers was reached which provided from the monies held to the brothers' order, £100,000 was to be paid to one brother with the balance paid to the other brother. The parties were proceeding on the basis that the sum was that in the client account. However under the Solicitors Accounts Rules the solicitors had to account for a sum in lieu of interest. On the proper construction of the compromise agreement the sum in lieu of interest was not included as monies held to the brothers' order and the Court of Appeal made a declaration accordingly remitting the issue of how the sum in lieu of interest was to be apportioned to the Chancery Division.
