Interim Payments/Summary Judgement/Injunctions/Security For Costs

Interim applications

Applications to the court for temporary orders or directions before trial

Court power to extend powers

Courts have broad discretion to extend powers when necessary

Summary judgment

Allows the court to dispose of claims or issues without a full trial (CPR 24.1)

Purpose of summary judgment

To save time, costs, and resources by removing weak claims or defenses early

Interim payment

Payment on account of damages, debt, or other sum a defendant may be liable to pay before the case is fully finished (CPR 25.1)

Purpose of interim payment

Gives the claimant financial support before trial or settlement

Security for costs

Application by a defendant concerned the claimant may be unable or unwilling to pay costs if claim is unsuccessful (CPR 25.12)

Interim injunction

Court order requiring a party to do or refrain from doing an act temporarily until trial or further order

Interim

Temporary or for the time being until a final decision is made

Interim application

Application to the court for an order or direction before trial or pre

Examples of interim applications

Extend time to file defence, amend statement of case, require further information, specific disclosure of a document, permission for expert evidence

Timing of interim applications

Made as soon as necessary (23A PD 2.5)

Party agreement

Parties should try to agree before applying for an interim order

Bunching applications

If hearings are fixed, parties should “bunch” applications to deal with them together (23A PD 2.6)

Interim application procedure

Issue, Service, Further Evidence, Hearing

Issue of interim application

File application notice (N244), pay fee, provide supporting evidence, provide draft order

Contents of N244

State who applies, what order is sought, why, and what evidence is relied upon

Service of interim application

Serve application notice, evidence, draft order, and notice of hearing at least 3 clear days before hearing (CPR 23.7)

Further evidence

Respondent may serve evidence; applicant may reply; both file statements of costs at least 24 hours before hearing (44 PD 9.5)

Hearing of interim application

Normally oral, may be by telephone (<1hr) or video exceptionally

Without notice applications

Made without informing the respondent beforehand, permitted only in exceptional circumstances

Safeguards for without notice applications

Explain why no notice given, present respondent’s likely arguments fairly, serve documents ASAP after hearing (CPR 23.10)

Summary judgment purpose

Early disposal of weak claims or defences to save costs, time, and court resources

Who can apply for summary judgment

Claimant after defendant files acknowledgment of service/defence, Defendant anytime, Court on own initiative

Grounds for summary judgment

Other party has no real prospect of succeeding and no compelling reason for trial (CPR 24.3)

“No real prospect”

Fanciful, imaginary, or false claim/defence

Compelling reasons for trial

Need more investigation, expert evidence, multi

Difference from strike out

Strike out removes claims with no grounds or abuse of process; summary judgment looks at evidence for no real prospect

Difference from default judgment

Default judgment entered if defendant fails to file acknowledgment of service or defence on time

Summary judgment procedure

N244, evidence, draft order, pay fee, serve at least 14 days before hearing, respondent evidence at least 7 days, applicant reply at least 3 days, exchange statements of costs 24 hours before hearing

Possible outcomes of summary judgment

Dismissal of application, dismissal of claim, judgment on claim, conditional order

Interim payments conditions

Defendant admits liability, claimant has judgment for sum to be assessed, court satisfied claimant would obtain substantial judgment (CPR 25.7)

Evidence for interim payment

Include reasons conditions met, likely final judgment, sum sought, items for payment, relevant evidence (CPR 25.22)

Procedure for interim payment

Voluntary request first; court application follows modified interim application procedure

Court powers for interim payment

Must not order more than reasonable proportion, may order installments (CPR 25.20(1))

Restrictions on interim payment

Details not disclosed to trial judge until liability and quantum decided (CPR 25.25)

Security for costs purpose

Order claimant to provide security to cover defendant’s costs if claim fails (CPR 25.26)

Who can apply for security for costs

Defendant against claimant, claimant against defendant in counterclaim, third party against defendant in additional claim (CPR 20)

Conditions for security for costs

Just in circumstances, and claimant out of jurisdiction, company likely unable to pay, false/misleading address, dissipated assets (CPR 25.27)

Court discretion for security for costs

Must consider whether order is just; should not bar access to justice; balance injustice to claimant vs defendant

Types of security

Payment into court, payment to solicitor, bank guarantee, undertaking to pay costs

Interim injunction purpose

Court order requiring party to do (mandatory) or not do (prohibitory) something temporarily before trial

Types of interim injunction

Prohibitory, mandatory, quia timet (prevents threatened wrong)

American Cyanamid test

Serious question to be tried, adequacy of damages, balance of convenience, not frivolous or vexatious claim

Equitable nature of injunctions

No automatic right; discretionary; court may refuse if no practical purpose, delay, or applicant lacks clean hands

Evidence for interim injunction

Supported by written evidence (CPR 25.7), if without notice must explain why notice not given

Additional safeguards for without notice injunctions

Cross

Possible orders at return date for injunction

Keep injunction until trial, discharge or vary, enforce undertaking in damages, replace with respondent’s voluntary undertaking