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Payment of interest for delay clarified by the Supreme Court

19.11.2009

In judgment number 3-2-1-70-09 of the Civil Chamber of the Supreme Court, the obligation to pay interest for delay has been clarified. The judgment addresses the issue whether a delay in the submission of a claim for interest for delay can be contrary to the principle of good faith. The Supreme Court held that the enforcement of a claim within the limitation period can be regarded as contrary to good faith, and therefore the claim can be regarded as extinguished due to a failure to enforce the claim over a longer period, only in exceptional circumstances. Suing for interest for delay could, however, be contrary to good faith if, during the negotiations before filing an action, the creditor had alluded to a conditional waiver of its claim for interest for delay but, regardless of that, later unexpectedly submitted a claim for interest for delay. As a rule, debtors must bear in mind that a delay in submitting a claim for interest for delay does not mean that the claim has extinguished.

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