When the time arises to apply for an interim payment on costs, there are two distinct avenues to follow in order to obtain payment; an application for a payment on account in accordance with CPR 44.2(8) or an application for an interim costs certificate in accordance with CPR 47.16
Below is a guide highlighting the differences between the two:
- Application for a payment on account
When?
This should be made at the conclusion of a hearing where a costs order is made, and typically before detailed assessment takes place. It can also be made a later date but it makes sense to carry it out as soon as possible.
Legal Basis
CPR 44.2(8) provides that:
“Where the court orders a party to pay costs subject to detailed assessment, it will order that party to pay a reasonable sum on account of costs, unless there is good reason not to do so.”
Primary Purpose
To secure an immediate, partial recovery of costs once entitlement has been established but prior to final quantification.
Key Features
- The presumption in the rule is that the court will make such an order where an order for detailed assessment is made.
- The application can be made orally at the hearing or later with a part 23 application.
- The amount ordered is not based on a detailed bill of costs but on a broad assessment of reasonableness, ideally with reference to a schedule of costs / n260.
- Interim Costs Certificate (CPR 47.16)
When?
After the receiving party has filed a request for a detailed assessment hearing (during detailed assessment proceedings).
Legal Basis
CPR 47.16(1) (a) provides:
“(1) The court may at any time after the receiving party has filed a request for a detailed assessment hearing –
(a) issue an interim costs certificate for such sum as it considers appropriate.”
Primary Purpose
To allow partial recovery of costs during detailed assessment proceedings, where the amount claimed is already itemised in a formal bill of costs, and the paying party’s objections have already been established.
Key Features
- Only available after a bill of costs has been served, detailed assessment proceedings are underway and the detailed assessment hearing has been requested (the application can actually be made before the detailed assessment hearing has been requested, so long as the request has been made by the time the application is heard).
- Requires the court to consider evidence from the Bill and any Points of Dispute or Replies, which may provide justification for a higher amount than would be available under a conventional payment on account of costs.
- Can be issued in a solicitor client assessment, the jurisdiction is not restricted to an inter parties assessment.
