Interim Payments on Account

Receiving parties should always ask for an interim payment on account of costs, especially when Detailed Assessment proceedings have been commenced

You can make an application for an interim payment after you have lodged the N258 Request for Detailed Assessment hearing. This is contained within Part 47.15 (1)

CPR Part 44.3 (8) - also see CPD 's - wherever costs are to be assessed by Detailed Assessment the court should consider whether to exercise its discretion under this part.

It is a obligatory prerequisite that the courts consider whether an interim payment should be made every time a costs order is made - either at a Trial or by Consent Order - the order for an interim payment in these circumstances would be for a forthwith payment

The Court doesn't needs to see a formal bill before making any orders for an interim costs payment. However, will most likely need something like an Estimate or an N260 as a rough guide of what the overall costs could amount to. This idea perhaps ties in with the costs budgeting theme, of keeping all parties and the court regularly informed about costs

 Cases for guidance

Hunt -v- R M Douglas (Roofing) Ltd [1998] 3 All ER 823

-solicitors and clients can have an agreement about how interest is applied. In this case where interest awarded on profit costs paid by the solicitor the solicitors went to the solicitors and interest on any disbursements paid by the client on incurred on the client's behalf would go to the client.

-Set out that the date from which interest on costs runs is the date of the order giving rise to the Detailed Assessment proceedings not the date of the hearing or the final costs certificate.

Mars UK Limited -v- Teknowledge Limited

- suggests that the amount awarded as an interim payment should be two thirds of what the DJ thinks will be awarded between the parties. - a word of warning

Powell -v Herefordshire Health Authority [2003] 2 Costs LR 185

- the court has discretion to decide from what date interest on costs runs and when it runs to. The court can even make an order to run from a date that precedes the authority for Detailed Assessment - CPR 44.3 (6) (g) quote. In that case the order was made way back in 1993 and this part of CPR overruled previous cases.

Interest on costs of Part 8 / Detailed Assessment proceedings runs from the date of the final costs certificate (or date of the interim costs certificate where appropriate). See CPD 45.5.

Bim-Kemi AB -v- Blackburn Chemicals [2003] EWCA Civ 889

- when an appeal decision is reversed and costs have already been assessed and paid in the court below.

Botham & Lamb -v- Khan [2004]

- stresses that the only penalties for commencing proceedings out of time are as to interest unless the paying party makes an application under Part 44.14