Interim Payments Flashcards
What are interim payments?
Interim payments are an advance payment on account of any damages, debt or other sum (excluding costs) that a defendant may be liable to pay.
What is the purpose of an interim payment?
The interim payment procedure allows a claimant who has a strong case on liability to avoid the financial hardship and/or inconvenience that might otherwise be suffered because of any delay during the period between the start of the claim and its final determination.
What CPR provision governs interim payments?
CPR Part 25
When can an application for an interim payment be made?
Before making any application to the court, the claimant should attempt to negotiate with the defendant or the defendant’s insurance company to obtain a voluntary interim payment.
Only if a voluntary payment is not forthcoming should an application be made.
A claimant may not seek an interim payment until the time for acknowledgement of service has expired.
(However, they can make more than one application during the proceedings).
What is the procedure for applying for an interim payment?
An application notice for an interim payment must be served at least 14 days before the hearing date.
If the respondent wishes to rely on evidence to counter the application, must be served at least 7 days before hearing.
Applicant may then respond with further evidence provided it is served at least 3 days before the hearing.
What evidence must be included on the application?
- The amount requested and what it will be used for;
- The amount of the sum of money that is likely to be awarded at final judgment; and
- The reason for believing that the grounds required by the CPR are satisfied.
Any documents in support of the application should be exhibited to the witness statement.
What are the grounds for an application for an interim payment?
The court must be satisfied that:
(a) The defendant has admitted liability; OR
(b) The claimant has obtained a judgment against the defendant for damages to be assessed or for a sum of money; OR
(c) if the case went to trial, the claimant would obtain judgment for a substantial amount of money (other than costs).
Burden on applicant for ground (c) is high:
They must prove that, on the balance of probabilities, they WILL succeed - not just that the court considers it likely that they will succeed.
What amount can the judge order for an interim payment?
The court cannot order a sum of more than a reasonable proportion of the likely amount of the final judgment, and must take into account contributory negligence and any counterclaim.
Will an interim payment be disclosed to the trial judge?
Not initially.
The trial judge will not be told about any interim payment order or voluntary payment until after they have determined all issues of liability and quantum, unless the defendant consents.
