Payments on account of costs
December 08, 2009
Posted by:Susan Slattery
While it is in paying parties’ interest to make a payment on account of costs many are still reluctant to agree to make one without the involvement/advice of a costs draftsman.
The NSHLA are a prime example even though typically a payment on account of costs would be ordered at the conclusion of a trial, on completion of a Consent Order in respect of an action settled out of court, or following a deemed Costs Order pursuant to Rule 44.12. The intention is that there should be an immediate [within 14 days of the Costs Order 44 PD 2] payment.
Payments on account are also beneficial to clients as they often allow for interim payments of compensation to be released while the parties continue to negotiate settlement.
Times do however appear to be changing as more and more agree to payments on account and understand how they actually benefit all parties!
Hold that thought…….