Interim payment

Money paid on account before your claim is finally decided — useful where you clearly have a case, but the exact final figure still needs to be worked out.

Can I get an interim payment if the defendant denies owing me anything?

It is much harder. The court needs to be satisfied that you would obtain a substantial judgment at trial, which is difficult to establish where liability itself is genuinely in dispute rather than just the amount.

Is an interim payment the same as a settlement?

No. An interim payment is a court-ordered payment on account within an ongoing claim — the case continues and the final amount is still to be decided. A settlement ends the claim entirely on agreed terms.

What if I am ordered to repay part of an interim payment?

If the final judgment is for less than the interim payment already made, the excess is generally repayable to the defendant, sometimes with interest, depending on what the court orders.

Do I need a solicitor to apply for an interim payment?

No, litigants in person can make the application themselves using the standard court forms and procedure, though you will need to put together clear evidence to support the request.

Is interim payment available in every type of claim?

No. Interim payments are not available on the small claims track, because CPR rule 27.2(1)(a) disapplies Part 25 (the rules on interim remedies) to small claims, apart from interim injunctions. On the fast, intermediate and multi-tracks a court can order one only where a condition in CPR rule 25.7 is met, and it comes up more often where liability is admitted or already decided.

When a court will order one

An interim payment is not available simply because a claimant needs the money urgently. The court can only order one where a specific condition is met: the defendant has admitted liability, the claimant has already obtained judgment for an amount to be assessed later, or the court is satisfied that if the case went to trial the claimant would obtain a substantial money judgment against the defendant.

Because interim payments are not available on the small claims track, this arises in larger claims on the fast, intermediate or multi-track. It most often comes up where liability is not really in dispute — for example, a defendant accepts they owe money but disputes the exact amount, or a claim has been won on liability but the final figure still needs to be assessed. The order is discretionary: even where the legal test is met, the court still decides whether it is appropriate to order a payment now, and how much.

How the process works

• 1 The claimant applies. An application is made to the court, usually using an application notice, explaining why an interim payment condition is met and how much is being asked for.
• 2 Evidence is provided. The claimant needs to show the basis for the figure requested — for example, an admission of liability, evidence supporting the likely final award, or an existing judgment on liability.
• 3 The defendant can respond. The defendant can dispute that the conditions are met, or argue the amount requested is too high given the uncertainty still remaining in the case.
• 4 The court decides an amount, if any. If satisfied, the court orders a sum, usually a reasonable proportion of the likely final award, to reflect the fact the exact final figure is not yet known.

A claimant sues for £25,000 for unpaid work, a claim too large for the small claims track. The defendant admits they owe money for the work done but disputes some of the specific invoices, meaning the final figure will need to be assessed at a hearing. Because liability is admitted, the claimant applies for an interim payment.

The court is satisfied the claimant will recover a substantial sum regardless of how the disputed invoices are resolved, and orders the defendant to pay £12,000 now, on account of whatever the final judgment turns out to be.

If the final judgment is later assessed at £17,000, the £12,000 already paid is deducted, leaving £5,000 outstanding. If the final judgment turned out to be less than £12,000, the claimant would have to repay the difference.

Application notice (N244)

Civil Procedure Rules, Part 25 — interim remedies

Civil Procedure Rules, Part 27: the small claims track (rule 27.2(1)(a))

Make a court claim for money

Interim Payment — Civil Claims Glossary

What an interim payment is, when a court can order a defendant to pay money on account before a claim is finally decided, and how to apply for one.