Interim payments

Question 1

What is an interim payment?

Answer 1

It is a payment on account of damages, debt, or other sum (except costs) which a defendant may be held liable to pay to the claimant.

Question 2

When might a claimant wish to ask for an interim payment?

Answer 2

To assist it financially in the interim period prior to settlement/trial, for example, in a PI claim.

Question 3

Who can apply for a interim payment?

Answer 3

An application for interim payment is made by the claimant.

Question 4

What conditions must be satisfied for interim payments?

Answer 4

The court will only make an order if they are satisfied any of the following conditions are satisfied:

1. The defendant has admitted liability to pay damages (or some other sum of money).
2. The claimant has obtained a judgment against that defendant for damages to be assessed (or for a sum of money other than costs).
3. It is satisfied that, if the claim went to trial, the claimant would obtain a judgment for a substantial amount of money against the defendant from whom he is seeking an interim payment, whether or not that defendant is the only defendant or one of a number of defendant’s to the claim.

Question 5

What evidence must the applicant provide alongside its application?

Answer 5

• The reasons for believing that the conditions for making an interim payment are satisfied;
• The sum of money for which final judgment is likely to be given;
• The sum of money sought by way of an interim payment;
• The items or matters in respect of which the interim payment is sought;
• Any other relevant matters;
• In claims for personal injuries, details of special damages and past and future loss; and
• In claims under the Fatal Accidents Act 1976, details of the person(s) on whose behalf the claim is made and the nature of the claim.

Any documents in support of the application should be exhibited, including, in personal injuries claims, the medical report.

Question 6

What must the claimant do before seeking an interim payment?

Answer 6

Make a request for a voluntary payment from the defendant first.

Question 7

When can the claimant seek a voluntary payment and interim payment?

Answer 7

Although the claimant can make a request to the defendant for a voluntary interim payment at any stage in the proceedings (including pre-action), the claimant cannot apply to the court for an interim payment before the end of the period for the defendant filing an acknowledgment of service.

Question 8

Can the claimant make more than one application for an interim payment?

Answer 8

Yes.

Question 9

What order must the court make?

Answer 9

The court must not make an interim payment of more than a reasonable proportion of the likely amount of the final judgment, taking into account any contributory negligence, set-off or counterclaim.

Question 10

Can the court order payment in instalments?

Answer 10

Yes.

Question 11

When must the claimant serve the application on the defendant?

Answer 11

At least 14 days before the hearing.

Question 12

When must the respondent file and serve evidence?

Answer 12

At least 7 days before the hearing.

Question 13

When must the applicant file and serve evidence in reply?

Answer 13

At least 3 days before the hearing.

Question 14

What is the restrictions in relation to interim payments?

Answer 14

Unless the defendant agrees otherwise, any voluntarily payment or interim payment made by the defendant in the course of proceedings, will not be disclosed to the trial judge until all questions of liability and quantum have been decided.