Posts Tagged ‘court payments’

Payments into the court

Saturday, July 24th, 2010

Circumstances when the court may order a payment into court:

When the court has ordered security for costs to be paid;
As a condition of granting some relief;
As a sanction for a party failing to comply with a rule, practice direction or court order; and
When the court deems that an interim payment should be made towards a claim.

Payment into court of security for costs
Payment into court is one means of providing security for costs when that has been ordered by a court.

Payment into court as a condition
An order for payment into court as a condition is common when applications for summary judgment or strike out are dismissed but the court still has doubts about the respondent’s position. The court, after hearing the application, accepts that it is arguable that the claim or defence may succeed but considers that it is improbable that it will do so.

The respondent will be ordered to make a payment into court as a condition of being granted relief from the strike out or summary judgment order sought.

Payment into court as a sanction
The court has power to order sanctions for non-compliance with court orders, rules and practice directions.

Interim payments
An interim payment is a payment on account of any damages, debt or other sum which a defendant may be held liable to pay to or for the benefit of a claimant. The court may only make an order for an interim payment where certain conditions are satisfied.