Q&As

We have received an interim payment of costs from the other party. Can it be used to clear an unpaid invoice or do we have to wait until the final determination of costs?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 11/03/2020

The following Dispute Resolution Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • We have received an interim payment of costs from the other party. Can it be used to clear an unpaid invoice or do we have to wait until the final determination of costs?

We have received an interim payment of costs from the other party. Can it be used to clear an unpaid invoice or do we have to wait until the final determination of costs?

CPR 44.2(8) provides that where the court orders a party to pay costs subject to detailed assessment, it will order that party to pay a reasonable sum on account of costs, unless there is good reason not to do so. The rule is drawn in mandatory terms (although there is a good reason exception) and an order can be made at a later stage even if no request was made when the costs order was granted: Ashman v Thomas. It should be noted, however, that where the entitlement to costs arises out of a deemed costs order, which will arise following acceptance of a Part 36 offer, CPR 44.2(8) does not apply (Finnegan v Spiers) and an interim costs certificate will be

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