Q&As

In a claim where liability was admitted and a client received a £3,000 interim payment, is there any obligation for that interim payment to be repaid to the defendant's insurers in circumstances where the client is not proceeding? The client has not responded and I am preparing to close their file on that basis.

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Published on LexisPSL on 26/05/2020

The following PI & Clinical Negligence Q&A provides comprehensive and up to date legal information covering:

  • In a claim where liability was admitted and a client received a £3,000 interim payment, is there any obligation for that interim payment to be repaid to the defendant's insurers in circumstances where the client is not proceeding? The client has not responded and I am preparing to close their file on that basis.

An interim payment is a payment made by a defendant on account of a claimant's monetary claim before the court has made a final determination on the amount of that claim. For further guidance, see Practice Note: Interim payments—guiding principles.

The Butterworths Personal Injury Litigation Service defines it as ‘a payment on account of any damages, debt or other sum (excluding costs) which that party may be held liable to pay’ See Commentary: Interim Payments: Butterworths Personal Injury Litigation [141].

CPR 38.2(2)(b) provides that: 'where the claimant has received an interim payment in relation to a claim

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