Civil Procedure Act 2005 No 28
Current version for 28 February 2013 to date (accessed 26 May 2013 at 16:21)
Part 6Division 5

Division 5 Interim payments

81   Definitions and application

(cf Act No 52 1970, sections 76D and 76H; Act No 9 1973, sections 57 and 61)

(1)  In this Division:

interim payment, in relation to proceedings for the recovery of damages, means a payment of any of those damages by a defendant before the completion of the proceedings, either voluntarily or in accordance with an order of the court under this Division.

public authority means a public or local authority constituted by or under an Act, a Government Department or a statutory body representing the Crown, and includes a person exercising functions on behalf of any such authority, Department or body.

(2)  This Division does not apply to an award of damages to which Chapter 5 of the Motor Accidents Compensation Act 1999 applies except as specifically provided by section 82 (7).
Note. Clause 11 of Schedule 6 to this Act provides that the reference in subsection (2) to an award of damages to which Chapter 5 of the Motor Accidents Compensation Act 1999 applies includes a reference to an award of damages to which Part 6 of the Motor Accidents Act 1988 applies.

82   Court may order interim payments

(cf Act No 52 1970, section 76E; Act No 9 1973, section 58)

(1)  In any proceedings for the recovery of damages, the court may order a defendant in the proceedings to make one or more payments to the plaintiff of part of the damages sought to be recovered in the proceedings.
(2)  The court may make such an order against a defendant on the application of the plaintiff at any stage of the proceedings.
(3)  The court may not make such an order unless:
(a)  the defendant has admitted liability, or
(b)  the plaintiff has obtained judgment against the defendant for damages to be assessed, or
(c)  the court is satisfied that, if the proceedings went to trial, the plaintiff would obtain judgment for substantial damages against the defendant.
(4)  The court may not make such an order if the defendant satisfies the court that:
(a)  the defendant is not insured in respect of the risk giving rise to the plaintiff’s claim for the recovery of damages, and
(b)  the defendant is not a public authority, and
(c)  the defendant would, having regard to the defendant’s means and resources, suffer undue hardship if such a payment were to be made.
(5)  The court may order a defendant to make one or more payments of such amounts as it thinks just, but not exceeding a reasonable proportion of the damages that, in the court’s opinion, are likely to be recovered by the plaintiff.
(6)  In estimating those damages, the court is to take into account any relevant contributory negligence, and any cross-claims, on which the defendant may be entitled to rely.
(7)  The court may make an order under this section in proceedings for the recovery of damages to which Chapter 5 of the Motor Accidents Compensation Act 1999 applies, but only an order for one or more payments to be made to the plaintiff of part of the damages for economic loss sought to be recovered in the proceedings and only if the court is satisfied that the plaintiff would suffer financial hardship if such a payment were not made.

83   Interim payment not admission of liability

(cf Act No 52 1970, section 76F; Act No 9 1973, section 59)

(1)  The fact that a defendant makes one or more interim payments is not of itself an admission of liability by the defendant.
(2)  The making of, or refusal to make, an order under this Division is not a finding as to liability in respect of the proceedings.

84   Adjustments on final judgment etc

(cf Act No 52 1970, section 76G; Act No 9 1973, section 60)

(1)  This section applies to proceedings in which a defendant makes one or more interim payments.
(2)  The court may make such orders with respect to the interim payments as may be just and, in particular, may order one or more of the following:
(a)  the variation or discontinuance of interim payments,
(b)  the repayment by the plaintiff of all or part of any interim payment, with or without interest,
(c)  the payment by another party of all or part of any interim payment that the defendant is entitled to recover from that other party.
(3)  The court may make an order under this section:
(a)  when making a final judgment or order, or
(b)  when granting the plaintiff leave to discontinue proceedings or to withdraw a claim, or
(c)  on the application of any party, at any other stage of the proceedings.
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