Interim payment on account of costs orders

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Interim payment on account of costs orders
  • What is an interim payment on account of costs?
  • During proceedings—an interim order for payment on account of costs may be made
  • End of proceedings—presumption that an order will be made if there is detailed assessment
  • Parties subsequently agree costs
  • Old decisions
  • Background to the change
  • Impact of a CFA on an order for an interim payment
  • No good reason to overturn the presumption—where there is detailed assessment
  • Good reason to overturn the presumption—where there is detailed assessment
  • More...

Interim payment on account of costs orders

What is an interim payment on account of costs?

Where the court has made an order for the payment of costs by the losing party, the successful party will not recover their costs until either the parties agree costs or the conclusion of the detailed assessment and this may take some considerable time. However, the general principle, set out in Mars UK Ltd v Teknowledge (1999), is that a successful party is entitled to their costs and they should be paid without delay.

In Grupo Hotelero Urvasco (2013), applying the underlying principle Mars, the judge said:

‘The principle is that the claimant is entitled to something by way of costs and he should be paid it without delay. The fact that there may be difficulties of assessment—large sums involved and great disputes - does not absolve the judge from the need to consider whether the justice that comes from not keeping someone out of the money to which he is entitled, can only be achieved at too high a price to a defendant, putting him in a position where he has paid more than due…Justice requires that a sum of costs be paid, provided there can be a reasonable assessment of the sum that is very likely to be awarded. The fact there are large disputes and large sums goes to

Popular documents