INTERIM PAYMENTS ON ACCOUNT OF COSTS: RECEIVING PARTY CAN ASK (AND RECEIVE) MORE THAN ONCE
I am grateful to Sam Hayman from Bolt Burdon for sending me a note of the judgment of Master MaCloud in Trotman -v- Master Brickwork London Essex Limited, a copy of which is available here. Trotman – final judgment of Master McCloud (1) The judgment finds that a receiving party is entitled to make a second application for an interim payment on account of costs.
“…there are very good reasons why rule 44.2(8) exists in the form which it does, and I have cited those above, and accept them. Early payment of costs which will inevitably be due serves the ends for example of limiting the scope for overly protracted assessment later, enables a party not to be kept out of their money, and reducing later applications for Interim Costs Certificates once detailed assessment has been commenced.”
The claimant sought a second interim payment on account of costs of £215,000. The defendant objected on the basis that the court did not have power to make a second payment, an initial interim payment of £65,000 having been incorporated into a consent order. Master McCloud found that there was a power and made an order.
“This judgment is about a simple question: can a party who has the benefit of a costs order receive, before commencing detailed assessment, more than one order for a payment on account of costs under that costs order? The Defendant says ‘no’. The Claimant says ‘yes’. My answer is ‘yes’ but I do not think the authorities cited in current commentaries quite resolve the matter as clearly as has been thought. I shall explain why I reach the answer ‘yes’, below.”
THE REASON THE COURT HAS POWER