The Future For Interim Payments In Catastrophic Injury Cases

Part 25 of the Civil Procedure Rules (CPR) allows a court to make an order for an interim payment when the defendant is insured or is a public body and where the claimant has obtained judgment or can show that it is likely that if the case went to trial, he would secure judgment for a substantial figure.

CPR 25.7 provides that the interim payment should be for a sum no more than "a reasonable proportion of the likely amount of the final judgment".

Prior to the amendment of the Damages Act 1996 by the Courts Act 2003, the usual practice of judges hearing applications for interim payments was to consider both parties schedules of loss and then make a conservative preliminary estimate of the likely total final award. The judge would then order an interim payment which allowed a comfortable margin in case his estimate turned out to be too generous.