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BPTC Law Notes BPTC Civil Ligitation Notes

Interim Payments And Security For Costs Notes

Updated Interim Payments And Security For Costs Notes

BPTC Civil Ligitation Notes

BPTC Civil Ligitation

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Interim Payments

What is an interim payment? An order for payment for payment of a sum of money by D on account of any damages, debt or other sum (except costs) which the court may hold D liable to pay
Procedure

Application cannot be made until period of filing AoS has expired. Applications are made on notice to D and must be served at least 14 clear days before the hearing of the application.

Must also be supported by evidence served with the application.
Evidence

  • Amount sought

  • What the money will be used for

  • The likely amount of the total award

  • The reasons for believing the relevant ground is satisfied

  • In a PI claim, details of special damages and past and future loss, and

  • In a claim under Fatal Accidents Act 1976, details of persons on whose behalf the claim is made and the nature of the claim.
An interim payment may ONLY be ordered IF:

  1. D has admitted liability to pay damages or some other sum of money to C;

  2. C has obtained judgment against D for damages or some other sum to be assessed;

  3. The court is satisfied that if the claim went to trial C would obtain a substantial amount of money from D;

  4. C is seeking possession of land, and court is satisfied that D would be liable to C for a sum of money;

  5. Where the claim is brought against multiple Ds and:

  1. The court is satisfied that C will obtain judgment of a substantial sum of money from at least one of the Ds;

  2. The court is unable to ascertain which D will lose;

  3. All Ds are either insured, public bodies, are Ds whose Liablity will be met by an insurer.
What else must be considered when the court is considering whether to make an order for interim payment?

Any relevant counterclaims, set-offs or any contributory negligence.

NB The power to grant interim payments is discretionary, and other factors can be considered.
How much should be awarded if interim payments are granted?

The court is not permitted to order more than a reasonable proportion of the likely amount of final judgment, taking into account counterclaims, set-off and contributory negligence.

Therefore the court must take the structured approach of:

  1. Calculating the likely final award.

  2. Discounting the probability/value of any CC/ set off/ CN and

  3. Reducing the amount again to arrive at a reasonable proportion.

The total amount for the interim payment may be ordered to be paid in instalments.

May choose not to make award against impecunious D.
In what way are interim payments secret? Where such payments are ordered they must not be revealed to the trial judge until after liability AND quantum are decided.


Security for Costs

What is an order for security for costs? Where a significant risk...

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