Interim payments

Question 1

What is an interim payment?

Answer 1

Payment on account of damages, debt or some other sum which the defendant may be held liable to pay a claimant

Provides financial assistance in the interim period prior to settlement or trial.

Question 2

Under what conditions can an interim payment be made?

Answer 2

Any of the following conditions:
* D has admitted liability to pay damages to C
* C has obtained judgment against D for damages to be assessed
* Satisfied that if the claim went to trial, C would obtain a substantial amount of money against D (very difficult to prove)

Question 3

What evidence is needed to justify an application for interim payment?

Answer 3

*Reasons to justify interim payment - how much do you want and why
* The items or matter in respect of which the interim payment is sought
* Details of special damages, and parts and future loss
* Details of the person on whose behalf the claim is made – if there has been a fatal accident.

Question 4

What is the first step in the procedure for obtaining an interim payment?

Answer 4

Make a request for voluntary payment from D first.

Question 5

What is the second step in the procedure for obtaining an interim payment?

Answer 5

Make an application to the court for interim payment.

Question 6

When can an application for interim payment be made?

Answer 6

Cannot happen before the end of the period for the defendant filing an acknowledgement of service.

Question 7

How many applications for interim payment can be made?

Answer 7

Only one per defendant, although you can claim against multiple defendants

Question 8

When must the application for IP be served on the other party?

Answer 8

Service of application must be at least 14 days before hearing.

Question 9

How long before the hearing must the respondent file evidence?

Answer 9

At least 7 days before hearing.

Question 10

How long before the hearing must the applicant file evidence in reply?

Answer 10

At least 3 days before hearing.

Question 11

Will interim payment orders be disclosed to the trial judge?

Answer 11

Unless D agrees, interim payment orders will not be disclosed to the trial judge until all questions of liability and quantum have been decided.

Question 12

Who makes an application for IP?

Answer 12

The claimant - they are asking the defendant for financial support

Question 13

CPR for interim payment

Answer 13

CPR 25.7