Example 3: Simple Amount with Queensland Statement of Claim situation

Example 3 Scenario

This example is based on the facts in Example 1. See entire scenario below for full version.

In the previous example:

•	We used the Normal Situation.

•	We used a File Rate of interest.

In this example:

•	We use the special Queensland Statement of Claim Situation.

Demonstrated Features

►	Number of amounts menu.

►	How to select a file rate of interest.

►	How calculation accounts for changing rates.

►	Examine relevant parts of the calculation result.

Points of Interest

◆	Program will automatically detect the appropriate Court, and Scale (if Magistrates Court).

◆	Automatically applies the correct interest rates.

◆	Automatically applies interest rules such as no compound interest ("interest on interest") allowed with pre-judgement Magistrates Court interest.

◆	Calculates and word-processes UCPR R150(3) statement for you.

◆	Calculates and word-processes Particulars of Costs and Particulars of Interest for you.

◆	Note: You will not be able to run this example unless you are a licensed Australian user with Queensland selected in the Setup form as an area in which you practise.

Multimedia Presentations

Click icon to watch video

Click icon to see how to merge results with your own MS Word 2007 precedents. This example uses the Queensland Statement of Claim situation.

Click icon to see how to merge results with other wordprocessors.

Entire Scenario

This example calculates interest on Simple Principal ($9,000) using applicable Queensland Court Pre-Judgment interest rates from 16 July 2004 to 21 Sep. 2007 inclusive. It also determines the jurisdiction, scale and calculates Scale Court costs. It also produces the R150(3) Statement under the UCPR.

Calculation Results

The results generated by the program are shown below.

►	The 'Auto Detect' Court setting was used. The program determined that the debt was within the jurisdiction of the Magistrates Court, Scale E - and put that information in the report heading.

(Qld) Claim/Statement of Claim

MAGISTRATES COURT (SCALE E)

►	The result starts with a summary of the principal, period, total interest, amount owing and accumulation rate.

►	Amounts are given in words as well as figures.

•	Calculated interest on nine thousand dollars and zero cents ($9,000.00) for the period 16/07/2004 to 21/09/2007 inclusive, a period of 1163 days.

•	Total interest is two thousand five hundred and seventy-nine dollars and eighty-eight cents ($2,579.88).

►	Program clearly distinguishes principal (underlying debt) and the interest on that debt.

►	Provides amounts in words for easy pasting to Claim and Statement of Claim.

•

As at 21/09/2007 the total amount owing is eleven thousand five hundred and seventy-nine dollars and eighty-eight cents ($11,579.88) comprised of principal of nine thousand dollars and zero cents ($9,000.00) and accumulated interest of two thousand five hundred and seventy-nine dollars and eighty-eight cents ($2,579.88).

►	Gives the accumulation for easy cut and paste.

•	Interest on $9,000.00 continues to accumulate at two dollars and twenty-two cents ($2.22) per day on and from 22/09/2007.

►	Has calculated the applicable scale costs.

•	Costs of eight hundred and forty-six dollars and fifty cents ($846.50) apply for the MAGISTRATES COURT (SCALE E).

►	Has produced the Notice under R150(3) without any effort.

►	The statement includes the calculation of costs on default judgment.

►	Simply paste into the Statement of Claim.

►	The program also outputs to a merge file so you can merge straight into word processing precedents.

NOTICE UNDER RULE 150(3)

The plaintiff claims:

$9,000.00;

$2,579.88 for interest; and

$846.50 for costs of issuing the claim and this statement of claim.

The proceeding ends if you pay those amounts before the time for filing your notice of intention to defend ends. If you are in default by not filing a notice of intention to defend within the time allowed, the plaintiff is entitled to claim additional costs of $155.00, costs of entering judgment in default.

►	Includes careful and complete narration of the calculation that you can simply cut and paste into your Statement of Claim.

PARTICULARS OF INTEREST

(a) On 16/07/2004 the principal was $9,000.00, the interest rate was 9% per annum, and the days per year base used to convert the annual interest rate into the daily interest rate was 366.

►	Notice that the program has determined the appropriate interest rate.

►	It has also given authority for the rate - in this case Magistrates Court Practice Direction 2/2002

(b) Calculated interest on 31/12/2004 because it was the last day before the days per year base changed (from 366 to 365) on 01/01/2005. Interest on $9,000.00 (principal) at 9% per annum (M.C.P.D. 2/2002) × 169 days (16/07/2004 to 31/12/2004 inclusive) ÷ 366 (days per year) is $374.02, resulting in a new unpaid interest balance of $374.02 ($0.00 plus $374.02).

(c) On 01/01/2005 the days per year base used to convert the annual interest rate into the daily interest rate changed to 365. The daily interest rate is now 0.02465753% on debit balances.

(d) Calculated interest on 21/09/2007. Interest on $9,000.00 (principal) at 9% per annum (M.C.P.D. 2/2002) × 994 days (01/01/2005 to 21/09/2007 inclusive) ÷ 365 (days per year) is $2,205.86, resulting in a new unpaid interest balance of $2,579.88 ($374.02 plus $2,205.86).

►	As usual the last three paragraphs summarize the calculation.

►	They give the total owing, and the composition of its constituent parts i.e. principal and interest.

►	The last paragraph says how interest is accruing per day.

►	Amounts are given in words so they can be pasted into legal documents if desired.

(e) As at 21/09/2007 the total amount owing is eleven thousand five hundred and seventy-nine dollars and eighty-eight cents ($11,579.88) comprised of principal of nine thousand dollars and zero cents ($9,000.00) and accumulated interest of two thousand five hundred and seventy-nine dollars and eighty-eight cents ($2,579.88).

(f) Total interest for the period 16/07/2004 to 21/09/2007 (1163 days) was two thousand five hundred and seventy-nine dollars and eighty-eight cents ($2,579.88).

(g) Interest on $9,000.00 continues to accumulate at two dollars and twenty-two cents ($2.22) per day on and from 22/09/2007.

►	Here are the particulars of costs.

►	The program has calculated them for you and then word-processed them ready for cut and paste or merging.

PARTICULARS OF COSTS

MAGISTRATES COURT (SCALE E)

Item No. Description Amount

Sch 2(1) (UCPFR) Filing Claim $174.00

Appeals Cost Fund $2.50

1 Instructions To Sue - claim and $670.00

statement of claim and service

Total $846.50

►	Program identifies and reports the applicable legislation and its currency.

►	Licensed users receive free updates as the rates change.

Costs calculated using: Uniform Civil Procedure (Fees) Regulation 1999 incorporating amendments as at 27/11/2006. Appeal Costs Fund Regulation 1999 Reprint 2B incorporating amendments as at 27/11/2006. Uniform Civil Procedure Rules 1999 Reprint 4F as at 13/11/2006.

INTEREST CALCULATION TABLE

DATE	DESCRIPTION	DAYS	AMOUNT	BALANCE	PRINCIPAL	INTEREST
16/07/2004	Interest rate started at 9% on debit balances (0.02459016% per day).			$9,000.00DR	$9,000.00DR	$0.00DR
31/12/2004	Interest (16/07/2004 to 31/12/2004 inclusive) $9,000.00 × 0.02459016% × 169 days = $374.02.	169	$374.02DR	$9,374.02DR	$9,000.00DR	$374.02DR
01/01/2005	Days per year changed to 365. Daily interest rate now 0.02465753% on debit balances.			$9,374.02DR	$9,000.00DR	$374.02DR
21/09/2007	Interest (01/01/2005 to 21/09/2007 inclusive) $9,000.00 × 0.02465753% × 994 days = $2,205.86.	994	$2,205.86DR	$11,579.88DR	$9,000.00DR	$2,579.88DR
	Final Balance	1163		$11,579.88DR	$9,000.00DR	$2,579.88DR

Calculation Notes

The following information is provided to give you a complete understanding of the calculation, so even the finest details are available if ever needed.

1. The debit interest rates have been taken from the debit rates file (qldmctpr).

2. The main calculation options (such as days per year, credit application order and rounding) have been taken from the debit rates file where they are embedded as part of the rates specification. These options can be changed for individual calculations in Settings|Options, or for all new cases in Settings|Setup.

3. The credit interest rates (if required) have been taken from the settings on the main form.

4. Decimal Rounding. When converting from an annual rate of interest to a daily rate of interest, and except if overridden in an interest rates file, the program has rounded-up to 8 decimal places, eg 8.12512324924555 is rounded to 8.12512325%. You can change the setting in Settings|Options.

5. Calendar Year. You are using the "Calendar Year" method for converting the annual interest rate to the daily interest rate. In many cases this is the most accurate setting but you should be aware that it adds complexity to the calculation report because it requires additional interest calculations before and after each leap year. If you require a simpler report and it is appropriate to do so then choose a different setting. The setting is either embedded in the Options section of the selected interest rate file or else it is set in Settings|Options on the main form. In either case you can change or override the setting for a particular calculation in Settings|Options. Please note that such settings only apply to the current calculation. You can change the default value that affects all new calculations in Settings|Setup. The default value cannot however automatically override any setting in the Options part of an interest rate file - you still have to override on an individual basis as explained above.