If a lawyer charges interest on unpaid costs, what must be included in the bill?

• A. Only the interest amount is listed in the bill.
• B. A statement of the interest rate and the applicable rate in the bill, subject to regulations.
• C. No mention of interest is required in the bill.
• D. A separate document detailing interest is provided outside the bill.

Answer: (B)

When a lawyer charges interest on unpaid costs, the bill must reveal how that interest is calculated. Specifically, it should include a statement of the interest rate and the applicable rate, as defined by the regulations. This transparency lets the client see both the rate being applied and the regulatory basis for it, so they can verify the calculation and ensure the charge is compliant. If only an interest amount were shown, the client wouldn’t know the rate or the regulatory basis; if no mention of interest appeared, the client would be unaware a charge was added; and a separate document outside the bill would undermine clear disclosure. So the bill must include both the interest rate and the applicable rate within the regulations governing costs.