Unit 3- Chapter 6- Interim applications
1. Introduction to Interim Applications
Definition
An interim application is any application made to the court after proceedings have commenced but before the final trial or judgment.
They deal with intermediate issues that arise during litigation, where a party needs a court order or direction to move the case forward efficiently.
Context
Even though many disputes settle or proceed to trial without significant interim intervention, often issues arise (e.g., needing more time to file a defence, requiring additional disclosure, seeking to amend a claim).
Aim
Usually revolve around ensuring the litigation progresses in line with the overriding objective: dealing with cases justly, expeditiously, and in a cost-effective manner.
2. Reasons for Interim Applications
Table 6.1 from the excerpt gives examples of applications related to:
Compliance with procedural matters:
Permission to serve out of the jurisdiction,
Challenging the court’s jurisdiction,
Permission to amend a statement of case (or add a new claim).
Requests for more time:
Extending time to serve a claim form or a defence,
Extending time to serve a list of documents in disclosure.
Preparation for trial:
Ordering a party to respond to a Part 18 request for further information,
Ordering specific disclosure of documents.
Penalties or relief from penalties:
Applying for a sanction against the opponent for failing to meet a deadline,
Relief from sanctions (e.g., if the court struck out a statement of case or imposed cost penalties, the party can ask the court to lift or vary that sanction).
2.1 Overriding Objective
All these applications should be consistent with CPR Part 1, which seeks to save expense, handle cases proportionately, and ensure fairness.
Courts discourage unnecessary applications or over-litigation, imposing costs penalties if they find the application was premature or avoidable by cooperation.
3. Procedure under CPR Part 23
3.1 Attempt to Resolve First
Before launching an interim application, the applicant is expected to attempt to resolve the issue by agreement or negotiation with the opponent.
If the matter is relatively simple (e.g., a short extension of time), it can often be concluded by an exchange of correspondence (letter or email).
The court wants parties to show they made efforts to avoid a formal hearing unless truly necessary.
3.2 Application Notice (N244)
If agreement cannot be reached, the party seeking the order (the “applicant”) must file an application notice (Form N244).
The other party is the respondent to the application.
Content of the Application Notice
Must specify:
What order the applicant is seeking,
Why the applicant wants that order,
Supporting evidence (witness statement or statement in the application explaining relevant facts).
Must also state whether the applicant requests a hearing or if they believe the matter can be dealt with without a hearing.
3.3 Service of the Application Notice
Typically, the applicant must serve the application notice (and any evidence) on the respondent well in advance of the hearing date (usually at least 3 clear days before, under CPR 23.7, though more time is often given in practice).
If it’s an urgent application, the court might reduce or dispense with these service requirements.
3.4 Evidence in Support
Often accompanied by a witness statement or statement of grounds.
Must exhibit key documents, if relevant (e.g., the original order, relevant correspondence).
3.5 Hearing or Paper Consideration
Some applications are decided on paper (no hearing) if the court or rules so allow, or if the parties consent.
Many, however, proceed to a short hearing before a District Judge or Master (depending on the court level).
3.6 Costs Implications
If the application is deemed unnecessary or disproportionate, the applicant may face adverse costs orders.
If the respondent unreasonably opposed a legitimate application, they might pay the applicant’s costs.
4. Illustrative Examples of Interim Applications
Extension of Time
If a defendant cannot serve the defence by the standard 14/28-day limit, they might request an order extending time.
Usually a straightforward application, but often resolved by agreement between solicitors, no hearing needed.
Summary Judgment
Though not explicitly mentioned in the excerpt, it’s a common Part 24 application if the claimant/defendant believes the other side’s case has no real prospect of success.
This is typically an interim measure that can effectively end the case early.
Specific Disclosure
Suppose a party fails to provide documents the other party believes are critical. The disappointed party might apply under CPR 31.12 for an order compelling specific disclosure.
Another scenario: a party wants an order to inspect certain property.
Relief from Sanctions
If a party missed a key deadline and the court imposed a penalty (like striking out the statement of case or awarding costs), that party can apply under CPR 3.9 for “relief from sanctions.” They must show a good reason and comply with the Denton 3-stage test:
Is the breach serious or significant?
Why did it occur?
Evaluate all the circumstances, including the overriding objective.
Security for Costs (not in the excerpt, but a typical example)
Defendant might apply if the claimant is overseas or financially precarious, seeking an order the claimant pay money into court or provide bond.
5. Practical Tips
Always Attempt Agreement:
The overriding objective requires trying to settle the issue by letter/email. Provide evidence of these attempts in your application if it fails.
Drafting:
Use Form N244, ensure clarity on the order sought, the reason, and reference any CPR rules if relevant (e.g., Part 17 for amendments).
Evidence:
Typically a witness statement or short statement in the application notice describing the background, attaching relevant exhibits.
Costs:
The court may reserve costs, summarily assess them, or direct them to be costs in the case.
If the application was premature or unmeritorious, the applicant may face an adverse costs order.
1. Which Court?
General Rule: An interim application must be made to the same court where the claim was issued or to which it has been transferred.
E.g., if a claim started in the County Court in Birmingham, any Part 23 application should go there unless the case has been moved (transferred) to a different county court or the High Court.
1.1 Practical Implication
Parties must check the location of the claim file. If the case is transferred (e.g., from a district registry to the Royal Courts of Justice, or from one county court to another), the transferee court is where you file your interim application.
2. Content of the Application Notice (Form N244)
2.1 The Application Notice
Form N244 is used to apply for most interim relief. It must state:
What order or directions the applicant is seeking (e.g., an extension of time, disclosure order, permission to amend, relief from sanctions),
Why they seek it – the reasons or grounds.
Even though there’s no absolute requirement in the CPR to file written evidence, in practice applicants almost always provide evidence to support the application (like a statement of truth or a witness statement).
2.2 Filling in the Form
On the second page of N244, there is a box to explain the request:
If it’s straightforward, the applicant can detail the facts/reasons there.
If it’s more complex or lengthy, a separate witness statement is filed alongside.
2.3 Statement of Truth
The application must be verified by a statement of truth. This ensures factual content is declared true to the best of the applicant’s knowledge.
3. Evidence in Support
3.1 Witness Statement
Typically, the applicant or their solicitor files a witness statement that:
Lays out relevant facts from personal knowledge or from the client’s instructions,
Explains why the order is needed,
Preempts the likely arguments the respondent would raise.
If the application concerns something like amendment of a statement of case, often the solicitor’s statement is appropriate (they’re best placed to explain drafting errors or newly discovered facts).
In a more factual dispute (e.g., needing urgent disclosure, or an extension of time due to unforeseen events), the client might be the best witness.
3.2 No Oral Evidence at Hearing
Usually, the judge decides on the written evidence plus oral submissions from counsel/solicitors. No witnesses are called to give evidence in person at an interim hearing.
Therefore, the statement must be sufficiently detailed to persuade the court without additional testimony.
3.3 Exhibits
If referencing documents, attach them as exhibits labeled (e.g., “AB1”, “AB2”).
E.g., a copy of the statement of case, relevant emails, contracts, or prior orders.
4. Draft Order (PD 23A)
Except for the simplest applications, the applicant should prepare a draft order indicating the exact terms they want the judge to approve.
The judge may edit or replace it with a different form of order, but providing a draft saves time and clarifies the request.
5. Service of the Application Notice
5.1 Minimum 3 Clear Days
CPR 23.7 requires the applicant to serve the notice (and evidence) on the respondent at least three clear days before the hearing.
“Clear days” means you exclude the day of service, the hearing day, and any weekends/bank holidays within that window.
Example
A hearing is on Thursday 10 November. Three clear days are Wed 9, Tue 8, and Mon 7.
So the last day for arrival is Friday 4 (since Sat/Sun are excluded).
If using first-class post, which is deemed served 2 business days after posting, the applicant must post no later than Wednesday 2.
5.2 If Urgent
The court can shorten or dispense with the service requirement if urgency is proven. E.g., injunction to freeze assets might be done with or without notice.
6. Consent Orders
When: If, after the application is filed, the parties reach agreement on how the court should decide it, they can propose a consent order to the judge.
No Hearing: Usually, if it’s genuinely agreed and the court sees it as fair, the judge can make the order without a formal hearing.
Submission: The parties typically send a draft consent order and a covering letter explaining the background. This saves costs/time.
7. Applications Without Notice
7.1 General Rule: Notice Required
Typically, an application must be made on notice, so the other side can respond. The court strongly encourages giving the opponent the chance to be heard.
7.2 Exceptions
Exceptional Urgency: e.g., risk of immediate dissipation of assets or destruction of evidence,
Overriding Objective: e.g., if giving notice would defeat the purpose of the order (like freezing a bank account so the opponent doesn’t move funds).
7.3 Duty of Full and Frank Disclosure
The applicant must present all material facts, including those which might be helpful to the absent opponent’s case.
Failing to do so can lead to the order being set aside later, and costs penalties for the applicant.
7.4 Serving the Resulting Order
If the court grants the order without notice, the applicant must promptly serve:
The order itself,
The application notice,
All supporting evidence.
The respondent then has 7 days (from service) to apply to vary or set aside that order.
8. Hearing Arrangements (Telephone/Video)
8.1 Time Estimate ≤ 1 Hour → Telephone
Under PD 23A, if the estimated hearing time is one hour or less, it will typically be handled by telephone if possible.
Exceptions:
Without notice hearings,
Very complex or sensitive matters might still require in-person or video.
8.2 Video Conferencing
Many courts allow remote hearings (by Zoom, MS Teams, etc.), especially if more than an hour or if the parties have the facilities.
Encouraged to save cost and time, consistent with the overriding objective.
9. Summary of the Part 23 Interim Application Procedure
Attempt resolution informally first (by letter/email).
If unresolved, prepare Form N244:
state the order sought & why.
Attach a witness statement or rely on the statement of case if it covers the relevant facts.
Optionally provide a draft order.
Serve the application (and evidence) 3 clear days before the hearing (unless urgent or by consent).
The respondent can file evidence in response.
A short hearing occurs (telephone, video, or in-person).
Judge makes an order, possibly with directions or cost rulings.
1. Introduction to Interim Costs
Definition:
In civil litigation, each time a party makes an interim application (e.g., for an extension of time, to amend a statement of case, or summary judgment), the court decides who pays the costs of that application at the end of the interim hearing.
“Pay as You Go”:
Unlike at trial, where total costs are often decided at the very end, interim applications usually lead to an immediate costs decision. This can influence party behavior by encouraging them to bring only meritorious applications.
General Costs Rule:
As per the CPR, the usual rule is the loser of the application pays the winner’s costs. However, judges have wide discretion and can take party conduct into account (overriding objective, reasonableness, necessity, etc.).
2. Common Interim Costs Orders
Table 6.2 in the excerpt gives examples of typical orders:
[Named party]’s costs
Means the specified (named) party gets their costs of the interim application immediately.
E.g., “Defendant’s costs” or “Claimant’s costs” implies the other side must pay them.
These are often “summarily assessed” right then (the judge decides on a figure or approach) and typically payable within 14 days.
Costs in the case
No immediate “winner” is named. Instead, the costs of this interim application get determined at the end of the main proceedings.
Essentially, the eventual loser in the overall case also pays these interim costs.
Example: The judge might say “costs in the case” if the application was somewhat balanced or conditional, letting the final outcome decide who pays.
No order as to costs
Each side bears their own costs for the interim application, regardless of the final outcome of the entire claim.
Often used when neither party is truly at fault or the matter was neutral (e.g., new evidence arises requiring an additional step).
2.1 Summarily Assessed Costs
If a named party’s costs are awarded, the judge will often summarily assess them right away if the hearing is short (less than ~1 hour) and the costs are straightforward.
The paying party must typically pay within 14 days unless the court specifies a different timeline.
3. Deciding Factors for Interim Costs
Who “Won” the Application?
If the applicant clearly succeeds, the respondent normally pays. If the application fails, the applicant pays. If it’s somewhere in the middle, the court might choose “costs in the case” or “no order.”
Conduct of the Parties
A party seeking permission to amend a poorly drafted statement of case might be penalized (e.g., “the applicant must pay the costs” because they should have gotten it right the first time).
If an application was avoidable (e.g., the party refused an extension that they later needed themselves), the judge might shift costs accordingly.
Overriding Objective (CPR 1.1)
The court’s main aim: dealing with the case justly and proportionately.
If an application was disproportionate or needless, the applicant could face an adverse costs order.
Importance of Attempting Agreement First
If a party applies prematurely without trying to settle the issue informally, the judge might punish them on costs (e.g., awarding them “no order for costs” even if they technically “won” the application).
4. Practical Examples
4.1 Standard “Loser Pays” Scenario
If the claimant applies for summary judgment against the defendant and succeeds, typically the order states “Defendant to pay claimant’s costs of this application, summarily assessed at £X, payable within 14 days.”
4.2 Weak Application to Amend
If the defendant applies to amend their defence because they made a fundamental drafting error, the judge may let them amend but order them to pay the claimant’s costs of responding to that application.
Even though the defendant “won” on obtaining the amendment, they’re still penalized because it was their mistake.
4.3 “Costs in the Case”
If the claimant obtains an order for a conditional extension to do something, and it’s not clear who is truly at fault or the hearing result is somewhat balanced, the judge might say: “Costs in the case,” meaning whoever eventually loses overall pays for these interim costs at the end.
4.4 No Order as to Costs
If new, unforeseen evidence emerges, and both sides appear equally neutral in causing the need for an interim step, the judge may direct “No order as to costs,” so each side shoulders their own interim expenses.
5. Implementation of Interim Cost Orders
Summarily Assessed:
For short applications, the judge often does a rough calculation of each side’s cost submissions (e.g., time spent by solicitors, counsel’s fees) and pronounces a lumpsum figure.
Payment is usually set at 14 days.
Detailed Assessment:
Rare at the interim stage unless the matter is complex. Usually saved for final costs assessment post-trial.
1. What Is Summary Judgment?
Definition: An application under Part 24 of the Civil Procedure Rules (CPR) allowing the court to decide a claim (or part of it) without a full trial if there is no real prospect of success or defence, and no other compelling reason for a trial.
Purpose: To weed out cases where the defence or claim is so weak that continuing to a full trial wastes time and costs.
1.1 Who Can Apply?
Most commonly: claimant applies to get judgment if the defendant’s defence is obviously hopeless.
However, a defendant may also apply if the claim is groundless or has no legal basis. (E.g., a litigant in person has filed a nonsensical or legally unviable PoC.)
2. Grounds for Summary Judgment (CPR 24.2)
To succeed, the court must be satisfied that:
The defendant (if claimant’s application) has no real prospect of successfully defending the claim, or
The claimant (if defendant’s application) has no real prospect of succeeding in the claim;No other compelling reason why the case or issue should go to a full trial.
2.1 “No Real Prospect”
The phrase means something more than a “fanciful” chance of success.
The court typically takes a robust but not final view of the evidence. They do not conduct a mini-trial, but they can consider whether the facts or law advanced are plausible or not.
2.2 “No Other Compelling Reason”
Even if the prospect looks bleak, the court checks whether additional reasons exist to proceed to trial, such as:
Need for further factual investigation (maybe a key witness is unavailable yet),
Complex legal/technical issues needing expert input,
Disputed oral evidence that the court wants to hear live at trial.
3. Suitability and Examples
3.1 When to Consider Summary Judgment
If a party’s statement of case is clearly groundless, or the defence is just a delaying tactic.
E.g., minimal or generic defences like “The claimant does not know how to do X properly” without specifics, or a “Litigant in person who misunderstands the law.”
Example: Classic Motoring Ltd vs. Joe
Joe sues Classic Motoring for £24,000 (defective go-kart kits). Classic’s “defence” just says: “Kits are fine, Joe doesn’t know how to build them.” That’s very vague.
Joe can apply for summary judgment, showing:
(a) Classic’s defence has no real prospect of success, and
(b) No compelling reason for a trial.
If the court sees the defence as too weak, it may grant Joe summary judgment, awarding him the £24,000 plus costs, or the judge might conclude it’s too technical and require an expert’s input → no summary judgment.
4. Procedure for Summary Judgment (CPR Part 24)
4.1 Timing
A claimant can apply any time after the defendant has filed an acknowledgment of service or a defence (CPR 24.4).
A defendant can also apply any time they have a defence or see the claim as legally/factually flawed.
If the claimant wants to apply before the defendant files a defence, they need court permission (rarely used unless the defence is obviously hopeless from the start).
4.2 Application Steps
Form N244 (application notice):
State the order sought (“Summary judgment on the claim/part of the claim”).
State why (brief reasons referencing no real prospect test).
Supporting Evidence:
Usually a witness statement from the claimant’s solicitor or the claimant. Must show key facts, attach relevant documents (e.g., contract, relevant correspondence).
Service Requirements:
The respondent (the other side) must be given at least 14 days’ notice of the hearing (CPR 24.4(3)).
The respondent must file/serve evidence in response no later than 7 days before the hearing.
The applicant may reply with further evidence at least 3 days before the hearing.
4.3 The Hearing
Typically short. The judge reviews the written evidence and hears submissions from each side (no witness cross-examination).
The judge decides:
Are the prospects so poor that continuing is pointless?
Is there a “compelling reason” for a full trial?
5. Possible Outcomes
Granting Summary Judgment (Claimant’s application):
The claim is decided in the claimant’s favor (e.g., awarding damages if it’s a monetary claim).
The defendant must pay costs. The proceedings effectively end, subject to enforcement or a disposal hearing if an unspecified claim’s quantum is not fully determined.
Dismissing the Claim (Defendant’s application):
The claim is struck out/dismissed. The defendant wins, the claimant pays costs, and the litigation ends.
Application Dismissed:
The judge refuses summary judgment because the respondent showed some real prospect or a compelling reason for trial. The case proceeds as normal. The applicant typically pays the respondent’s costs of the application.
Conditional Order:
The court is uncertain. Possibly the claim or defence might succeed, but the judge imposes a condition (e.g., requiring the defendant to pay money into court or file an amended defence within a set time).
If the condition is not met, the claim or defence is struck out.
Example (Conditional Order)
The judge finds Classic’s defence uncertain but not obviously hopeless. They require Classic to file a detailed defence within 14 days and deposit the £24,000 claim amount into court within 28 days. Failing that, they lose their defence.
6. Costs Implications
If Applicant Succeeds:
Usually, the loser pays the winner’s costs of the entire claim (if it disposes of the matter) or at least the application.
For a specified sum: The court may award fixed costs under Part 45 (though the winning claimant might ask for more via summary assessment).
If Defendant Succeeds (and the claim is struck out):
The defendant typically gets costs of the whole action. The claimant’s claim is effectively over.
If Application Is Dismissed:
The unsuccessful applicant pays the respondent’s costs of that application. The main claim continues.
Conditional Order:
Usually “costs in the case,” meaning these interim application costs get decided by the final outcome.
7. Practical Observations
Summary Judgment is a powerful tool to avoid a lengthy or expensive trial if the other side’s case is obviously weak.
However, courts can be cautious: if there’s any real factual or expert dispute, they prefer a full trial to resolve it.
The burden is on the applicant to show:
No real prospect of success/defence, and
No compelling reason for trial.
If the respondent can invalidate any one of those prongs, the application fails.
1. Definition and Purpose of an Interim Injunction
Definition
An injunction is a court order compelling a party either to refrain from doing something (prohibitory injunction) or to take certain positive steps (mandatory injunction).
An interim injunction is granted before trial, to maintain the status quo (or otherwise protect rights) until the final hearing can decide the issues.
Contempt of Court
If a person breaches an injunction, they risk being found in contempt of court, which can lead to serious penalties (fines, imprisonment).
Discretionary Nature
Injunctions are granted only where damages wouldn’t be an adequate remedy. The court has broad discretion to refuse if it feels the situation calls for a full trial or if monetary compensation suffices.
Maintain Status Quo
Typically, the aim is to preserve the current situation until the case is resolved. Examples:
Stopping a competitor from using confidential information,
Preventing sale of allegedly infringing products.
2. Who Can Apply and When?
2.1 Who?
Either party can apply for an interim injunction if it supports their case.
A claimant might seek an injunction preventing the defendant from continuing certain harmful activity.
A defendant might seek an injunction if the claimant is doing something that prejudices their rights.
2.2 When?
Any time after proceedings have started (CPR 25.2(1)).
In “exceptional cases,” an injunction can be granted before a claim is formally issued (pre-action), but the applicant must show urgent necessity or that it’s “otherwise desirable in the interests of justice.”
2.3 Duration
The interim injunction lasts until trial (or further order). At trial, the judge decides whether to issue a final injunction or discharge it.
3. “American Cyanamid” Guidelines
The leading case is American Cyanamid Co (No 1) v Ethicon Ltd [1975] UKHL 1, which sets out the following four guidelines the court considers when deciding an application for an interim injunction:
Serious Question to be Tried
The applicant must show the claim is not frivolous or vexatious. There’s a real (arguable) issue to be determined at trial.
Damages Inadequate (for claimant, if the injunction is to protect them)
If money alone would not compensate the injury, an injunction may be needed to prevent irreparable harm.
Conversely, if granting the injunction might harm the defendant, the court checks if the defendant can be compensated by damages if it turns out the injunction was wrongly granted.
Balance of Convenience
The court weighs the potential harm to the applicant if the injunction is not granted against the harm to the respondent if it is granted.
If the applicant’s harm from not having the injunction outweighs the respondent’s harm from having it imposed, the court leans toward granting it, and vice versa.
Any Special Factors / Overall Justice
This can include public interest concerns, or specific equitable principles.
If the injunction might put the respondent completely out of business whereas refusing it just causes the applicant some lost profits (but they can be compensated in money), the court may refuse.
4. Examples Illustrating Interim Injunctions
Taste of the Caribbean Ltd (TCL) vs. Ocean Foods Ltd (Ocean)
TCL sues Ocean for copyright infringement in sauce jar labeling.
TCL seeks an interim injunction to stop Ocean from selling the allegedly infringing sauce until trial.
Outcome 1: Court grants the injunction, seeing a serious issue (copyright infringement) and deciding damages aren’t adequate for TCL (their brand could suffer ongoing harm).
Outcome 2: Alternatively, the court might find Ocean would go out of business if the injunction is granted, or that money damages to TCL suffice. The judge refuses the injunction.Joe vs. Classic Motoring (from earlier example)
If Joe suspects Classic is continuing to sell defective kits harming Joe’s business further, Joe might seek an injunction to make them stop marketing those kits until trial.
5. Cross-Undertaking in Damages
Definition
When an interim injunction is granted, the applicant must give a cross-undertaking to pay damages to the respondent (or any affected person) if it later appears the injunction shouldn’t have been granted.
Rationale
Because the respondent is being restricted before final adjudication, if they ultimately prevail, they can recover losses caused by the incorrectly granted injunction.
Example:
TCL obtains an injunction stopping Ocean from selling sauce. Later, at trial, it’s found Ocean wasn’t infringing. Ocean can claim damages for lost profit from the time they were unjustly enjoined.
6. Procedure for Applying
6.1 Application Notice and Evidence
As with other interim applications, the applicant files Form N244 (Part 23 application) plus a witness statement setting out:
Why they need an interim injunction,
Factual evidence establishing each American Cyanamid factor (serious question, irreparable harm, balance of convenience, etc.),
A draft order if possible.
6.2 Hearings with Notice
Generally, an injunction application is made on notice, giving the respondent time to respond or challenge.
The resulting interim injunction (if granted) typically remains in force until trial, or until varied/discharged by further order.
6.3 Hearings without Notice
In urgent or secretive situations (e.g., fear the respondent might destroy evidence or move assets), an injunction can be sought without notice (ex parte).
If granted, the order usually either:
Sets a return date for a full inter partes hearing, or
Stays in force, giving the respondent the right to apply to set it aside or vary within a specified time (commonly 7 days).
7. Specific Types of Injunctions
7.1 Freezing Injunctions (aka Mareva Orders)
Prevent the respondent from removing assets from England and Wales or dissipating them so no judgment sum can be recovered.
Usually made without notice (to avoid the respondent transferring assets).
Applicant must show a good arguable case and real risk of asset dissipation.
7.2 Search Orders (aka Anton Piller Orders)
The respondent must allow the applicant (and a supervising solicitor) to enter their premises to search for and seize important evidence or property belonging to the applicant.
Also typically made without notice, to prevent hiding/destroying items.
The court requires strong evidence of wrongdoing and risk of destruction of crucial evidence.
8. Costs and Practicalities
Injunctions can be powerful, but they also carry the risk that the applicant might pay damages (via cross-undertaking) if it was wrongly obtained.
Courts may require applicants to show they have sufficient financial resources to honor the cross-undertaking if needed.
Costs of the application usually follow the event (loser pays), but the judge has wide discretion, especially if parties partially succeed or if the injunction is only partially granted.
1. What Is an Interim Payment?
Definition
An interim payment is an advance on the final damages (or debt or sum) that a defendant may be liable to pay at the end of the case. It excludes costs (legal fees).
The claimant seeks it before the final judgment to ease potential financial hardship or inconvenience that might arise from delays in litigation.
Rationale
If the claimant has a strong case on liability, the law allows them to get part of their damages early, ensuring they don’t suffer undue hardship waiting for the full trial or final settlement.
Example Context
In a personal injury claim where the claimant has suffered significant losses and it’s clear the defendant has some liability, an interim payment helps the claimant cover ongoing expenses (like medical bills) without waiting for the final award.
2. Pre-Application Negotiation
Attempt Agreement:
The claimant should first try to obtain a voluntary interim payment from the defendant or their insurer before filing an application to court.
Only if the defendant refuses or offers too little does the claimant proceed with a formal application.
3. Timing Constraints
Earliest Date
A claimant may not apply until after the time for acknowledging service has expired. (i.e., not typically immediate upon issue of the claim.)
Multiple Applications
The claimant can apply more than once during the proceedings if circumstances change (e.g., new evidence or increased losses).
4. Procedure for an Interim Payment Application (CPR Part 25)
4.1 Application Notice
Use Form N244. It must be served at least 14 days before the hearing date.
4.2 Evidence in Support
Must include a witness statement (or affidavit) that shows:
How much the claimant wants,
What it will be used for (e.g., medical bills, bridging finance),
The likely final judgment sum,
The grounds under CPR Part 25 on which the claimant relies,
Any relevant supporting documents exhibited (e.g., medical reports, partial admissions by the defendant, etc.).
If the respondent wants to oppose the application, they serve their evidence at least 7 days before the hearing. The applicant may then serve reply evidence at least 3 days before the hearing.
5. Grounds for an Interim Payment (CPR 25.7)
The court will only make an interim payment order if at least one of these conditions is met:
The defendant has admitted liability (for the sum or for damages).
The claimant has obtained judgment on liability already (e.g., a judgment for damages to be assessed, or for a debt) – so only quantum remains.
The court is satisfied that if the matter went to trial, the claimant would obtain substantial damages (other than costs) from that defendant.
5.1 “Must Prove on Balance of Probabilities”
Under ground (c), the claimant must show they will succeed on the merits, not just that it’s likely they will. This is strict because once money is paid, it may be hard to get it back if the claim later fails.
5.2 “Delay in Damages Assessment”
Often used if final damages cannot be assessed for some time (complex injuries, ongoing losses, etc.). An interim payment can help the claimant financially until trial.
6. Court’s Discretion on the Amount
Even if the claimant meets a ground for an interim payment:
Should an interim payment be ordered at all?
If the issues are very complicated or tricky points of law are in play, the judge may decide not to order any interim payment.
How Much can the court order?
CPR 25.7(4): The court cannot order more than a “reasonable proportion” of the likely final judgment after accounting for possible contributory negligence or any counterclaim.
Essentially, the judge tries to gauge the lowest figure the claimant would definitely recover if successful, ensuring minimal risk of overpayment.
One Sum or Instalments
The court can direct the interim payment to be paid in one lump sum or by instalments.
7. Effect on Trial
7.1 Secrecy of the Payment
The trial judge will not be told about any interim payment order (or any voluntary payment) until after liability and quantum are decided, unless the defendant consents.
This is to avoid influencing the trial judge’s assessment of damages or liability.
7.2 Post-Trial Settlement of Accounts
If the claimant receives an interim payment but eventually is awarded less at trial, the difference might be repaid to the defendant, or adjusted in the final cost/award calculation.
8. Practical Examples
Personal Injury:
The defendant’s insurer partially admits liability but disputes the extent of injuries. The claimant applies for £50,000 as an interim payment to cover ongoing care. The court, if satisfied of liability and a substantial probable award, may award e.g. £20,000 to avoid overpaying.
Complex Commercial Dispute:
The defendant acknowledges some liability (like part of the contractual debt) but disputes the rest. The claimant requests that portion as an interim payment so they don’t have to wait for trial on the entire sum.
9. Costs and Conclusions
If a claimant successfully obtains an interim payment order, the defendant typically pays the costs of that application.
If the application is refused, the claimant may be liable for the defendant’s costs of responding.
An interim payment helps claimants secure financial relief sooner where they’re likely to succeed. However, the threshold is relatively strict to protect defendants from irreparable harm if overpayment is made.
Key Takeaway: The interim payment remedy aims to strike a balance between not overburdening defendants with payments they might never owe if they win, and preventing claimants from suffering undue hardship due to lengthy litigation delays.