An interim payment is an amount paid to someone during the course of the claim on account of damages that might be due at the end of the case to prevent the claimant suffering unnecessary financial hardship, but it’s not available in every case.

Five facts about interim payments

  1. An interim payment is an amount paid to someone who is making a claim on account of damages (not costs) that a Defendant might be liable to pay at the conclusion of the case. It is designed to prevent the Claimant from suffering hardship as a result of additional expenses incurred as a result of the Defendant’s wrongdoing until a final settlement has been reached.
  2. The payment(s) cannot be more than a reasonable proportion of the damages that are likely to be obtained as part of the final Judgment.
  3. Payments can either be agreed between the parties or be ordered as a discretionary power by the Court if:
    • The Defendant has admitted liability, or;
    • The Claimant has obtained Judgment but damages are yet to be assessed, or;
    • The Court is satisfied that, if the case went to trial, the Claimant would obtain substantial damages;
    • The Defendant must also be an Insurer or Public Body.
  4. They must be justified, with the monies normally being used to cover the costs of changes/losses that have come about as a result of the injury. For example, the additional costs of suitable private care or specialist equipment, which is often expensive, or even a new home to suit a Claimant’s adapted needs.
  5. They will normally be deducted from any final settlement or Judgment figure.