Interim payments—guiding principles
Interim payments—guiding principles

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

  • Interim payments—guiding principles
  • What is an interim payment?
  • When can the court order an interim payment?
  • What are the conditions in CPR 25.7(1)?
  • How does a claimant prove they will ‘obtain judgment for a substantial amount of money’ (CPR 25.7(1)(c) and CPR 25.7(1)(e)(i))?
  • Will the court exercise its discretion if the conditions in CPR 25.7(1) are met?
  • How much will the defendant be ordered to pay?
  • What is the ‘likely amount of the final judgment’?
  • What is a ‘reasonable proportion’ of the likely amount of the final judgment?
  • Responding to an application

This Practice Note explains what an interim payment order is and the circumstances in which the court will grant one. It deals with the conditions for making an interim payment order under CPR 25.7(1) and how the court calculates the amount of an interim payment order, which is a ‘reasonable proportion of the likely amount of the final judgment’.

For guidance on how to apply for an interim payment order, see Practice Note: Interim payments—procedure and effect on final judgment.

For cases illustrating the application of the principles set out below, see Practice Note: Interim payments—key and illustrative decisions.

What is an interim payment?

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.

Defendants often make interim payments for tactical reasons where liability is not in dispute, for example to reduce their liability to pay interest. However, defendants are not always prepared to make voluntary interim payments. If that is the case then a claimant in need of money sooner than the final judgment will have to apply to the court for an interim payment order.

Jurisdiction to order an interim payment is found in CPR 25.1(1)(k), which provides:

‘The court may grant the following interim remedies [...] an order (referred to as an order for interim payment) under

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