Interim Payments Flashcards
What is an interim payment?
A. A payment for the claimant’s legal costs
B. A penalty imposed by the court before trial
C. A payment on account of damages or debt before trial
D. A payment for the defendant’s expenses during litigation
C. A payment on account of damages or debt before trial
Explanation: An interim payment is made by the defendant to the claimant on account of the final amount expected to be awarded. It does not include costs.
Which of the following is NOT a valid reason to grant an interim payment?
A. The defendant has admitted liability
B. The defendant is bankrupt
C. The claimant has judgment for damages to be assessed
D. The court believes the claimant would succeed at trial
B. The defendant is bankrupt
Explanation: Bankruptcy alone is not a ground. The court must be satisfied one of the CPR 25.7 conditions is met.
Who can apply for an interim payment?
A. Claimant
B. Defendant
C. Either party
D. Judge only
A. Claimant
Explanation: Only the claimant can apply for an interim payment under CPR 25.6–25.9.
When can a claimant apply for an interim payment?
A. Anytime after filing the claim
B. Immediately after pre-action protocol ends
C. After the time limit for acknowledgment of service has expired
D. After trial has concluded
C. After the time limit for acknowledgment of service has expired
Explanation: CPR 25.6(1) states that applications cannot be made until the acknowledgment of service period ends.
Lisa is a claimant in a personal injury case. She needs to pay for home modifications urgently. The defendant has admitted liability but is disputing the amount of damages. What is Lisa’s best course of action?
A. Wait until trial
B. Request the court to order the defendant to pay costs early
C. Apply for a summary judgment
D. Apply for an interim payment
D. Apply for an interim payment
Explanation: Since the defendant has admitted liability, Lisa can apply for a payment on account of damages.
A court is considering whether to grant an interim payment. The defendant denies liability. However, the judge is satisfied the claimant will succeed and be awarded a substantial sum at trial. What can the court do?
A. Refuse the interim payment because the defendant disputes the claim
B. Order the defendant to pay full damages
C. Order an interim payment if proportionate
D. Adjourn the hearing to trial
C. Order an interim payment if proportionate
Explanation: Even without an admission, the court may grant an interim payment if it believes the claimant is likely to succeed (CPR 25.7).
A claimant requests an interim payment of £150,000. The judge estimates the final judgment is likely to be around £200,000, but there is a possible 25% deduction for contributory negligence. What is the maximum payment the court is likely to order?
A. £200,000
B. £150,000
C. £100,000
D. £50,000
C. £100,000
Explanation: £200,000 less 25% = £150,000. The interim payment must be a reasonable proportion, so £100,000 would be safe.
In which of the following situations would an interim payment NOT be appropriate?
A. The claimant has a judgment for damages to be assessed
B. The defendant has admitted liability
C. The court is convinced the claimant has no chance of success
D. The claimant has strong evidence of a likely win at trial
C. The court is convinced the claimant has no chance of success
Explanation: If the claimant is unlikely to win, there is no basis for ordering an interim payment.
Mia applies for an interim payment and serves the application 10 days before the hearing. The defendant files a witness statement in response 4 days before the hearing. Mia now wants to file further evidence. By when must she serve it?
A. At least 3 days before the hearing
B. At least 7 days before the hearing
C. By the morning of the hearing
D. Anytime before trial
A. At least 3 days before the hearing
Explanation: Under CPR and PD 25B, reply evidence must be served at least 3 days before the hearing.
A claimant in a fatal accident claim is applying for an interim payment. What must be included in their evidence?
A. Defendant’s costs
B. All expert evidence
C. Details of parties claiming and nature of the claim
D. The full medical records of the deceased
C. Details of parties claiming and nature of the claim
Explanation: In fatal accident claims, this is a specific requirement under PD 25B.
If an interim payment is made during proceedings, when can the trial judge be informed of it?
A. Only after liability and quantum have been determined
B. As soon as the payment is made
C. Before the hearing for summary judgment
D. At the case management conference
A. Only after liability and quantum have been determined
Explanation: Under CPR 25.9, interim payments must not be disclosed to the trial judge unless agreed.
A defendant believes the claimant is inflating their damages claim and the case may settle before trial. They refuse a voluntary interim payment. What is the likely result?
A. The court will compel payment automatically
B. The claimant will have to wait for trial
C. The claimant may apply for an interim payment order
D. The court will strike out the defence
C. The claimant may apply for an interim payment order
Explanation: The claimant may still apply formally, and the court will consider the application under CPR 25.7.
