Caltex must get interest on legal bill

THE Director of Buildings and Lands, after a long-running court battle, must pay three years' interest on a legal bill to Caltex Oil Hong Kong, the Lands Tribunal ruled yesterday.

The Government had been ordered to pay $9.8 million compensation to Caltex in December 1989, together with its legal costs.

Three years later, Caltex's legal bill was taxed at $1.56 million, but a dispute followed as to whether interest ran from when costs were ordered or were quantified.

After considering a recent change in English law, Judge Cruden yesterday ruled that the interest ran from the earlier date, when the costs were ordered, following the English practice.