Interim payment

Question 1

What is interim payment?

Answer 1

An order for payment by D on account of any damages, debt or other sum (except costs) which the court may hold the defendant liable to pay

Question 2

What part of the CPR deals with interim payment?

Answer 2

Part 25.7

Question 3

Which parties can apply for interim payment?

Answer 3

Claimant only

Question 4

Is the power of the court to order interim payment discretionary or mandatory?

Answer 4

Discretionary

Question 5

Set out the test/conditions for the court to make interim payment.

Answer 5

1. D has filed the acknowledgement of service; and
2. C establishes at least one of the following conditions:
   a. D has admitted liability
   b. C has obtained judgment against D
   c. C would obtain judgment for a substantial amount of money against D if matter proceeded to trial

Question 6

After setting out the test, what 4 other things may need to be established for interim payment?

Answer 6

1. Explain what IP will be used for
2. Request a specific sum for IP or installment payment
3. Demonstrate that the sum requested is a reasonable proportion of likely damages
4. If relevant address contributory negligence and/or any relevant set-off/counterclaim.