Interim Payments and Security for Costs

Question 1

Interim payments available where:

Answer 1

• D admitted liability to pay damages
• C has obtained judgment for damages to be assessed
• C is seeking an order for possession of land and court satisfied that if case went to trial D would be held liable to pay C a sum for occupation of the land
• Court satisfied that C would obtain judgment against D for a substantial amount of money

Question 2

Amount of interim payments

Answer 2

• Reasonable proportion of the likely final judgment amount

- Taking into account set-off, counterclaim, contrib. neg

Question 3

Application for security for costs procedure

Answer 3

• With application notice
• Supported by evidence inc. WS
• Not until end of time for filing acknowledgment of service, but as soon as it becomes apparent it is necessary or desirable
• Application requires 3 clear days notice to D before the hearing

Question 4

Evidence required for interim payment

Answer 4

• Sum sought
• Details of items against which payment sought, but no requirement of a specific need for it for past losses (only future)
• Likely eventual sum
• PI details

Question 5

Secrecy of interim payment

Answer 5

Will not be disclosed to a trial judge

Question 6

Multiple applications

Answer 6

Only where material change in circumstances or other good reason

Question 7

Security for costs outside the jurisdiction/against impecunious companies test

Answer 7

• Is R the C?
• Just to order in all the circumstances of the case?
• C ordinarily resident outside the jurisdiction
• C is a company and unable to pay D’s costs
• C changed address to avoid payment/address not stated on the claim form
• Overriding objective and proportionate against the risk posed by ground relied upon
• Reasonable proportion of the final judgment
• Merits of the case irrelevant