Payment into court
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13 September 2009
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
Payment into court as a sanction
The court has power to order sanctions for non-compliance with
court orders, rules and practice directions.
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.
Jane Coyle is a trainee solicitor at Lawdit and can be
contacted at email@example.com
About the Author
Lawdit Solicitors offer services and
advice for litigation, commercial contracts, Intellectual Property and IT legal
agreements. We are experts in commercial law with a heavy emphasis on
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Article Published/Sorted/Amended on Scopulus 2009-09-30 12:37:51 in Legal Articles