Interim Payments: The best of both worlds
Business & Litigation Manager at R Costings, Kate Benn, discusses how interim payments can give you the best of both worlds...
"Do you want to receive cash profit quickly, but not to the detriment of securing the best possible settlement?
Since January 2021 alone, R Costings has secured almost half a million pounds for our clients in interim payments averaging almost 50% of the costs claimed before service of Points of Dispute. On occasion, this is in addition to interim payments directly obtained by the Client at the point of settlement of the main action.
At R Costings, we can ensure that you not only maximise your profit recovery but also ensure that an early interim payment is secured towards your costs, allowing a reasonable time for the best possible settlement to be made knowing you are already in partial funds.
Interim payments are key to allowing your costs expert to properly cost, value, and explore a fair and reasonable settlement of your costs without the pressure of your firm’s cash needs. Interim payments are also beneficial for the paying party, it limits their liability for the interest which can be in the £1,000’s on large matters.
Securing an early cash injection also ensures that if your costs matter is destined for provisional or detailed assessment, any court delays in undertaking the assessment doesn’t have a negative impact on your cashflow. We are all too aware of the delays currently, in part owing to the pandemic, in the Courts and this can at times be a factor as to whether or not to under settle a costs claim on the basis that less money now, is better than more money months down the line. Your opposition relies to some extent on that being the case, therefore, by obtaining an interim payment early on, you are free to progress your costs matter as far as is reasonable to ensure recovery of the reasonable costs for the work done.
Looking at the wider picture, there is the added benefit too of some more complex preliminary issues being considered at assessment, and if in your favour, can provide persuasive precedent on points such as hourly rates. This can only bolster future arguments where they may be specific on a number of cases to your firm.
A R Costings, our approach is to draft you a clear and concise bill, providing you with our initial considerations of the costs claimed and risk. Upon prompt service, we immediately seek that interim payment on your behalf, relying on the overwhelming extent of case law (especially in the instance where there is a CMO) and using our experience to ensure that the interim payment request is pitched appropriately. This then allows us to guide you through the detailed assessment process, advising on Points of Dispute, promptly preparing the Points of Reply and setting the matter down for assessment once negotiations have been reasonably exhausted.
If you would like to benefit from our experience and would welcome receipt of an interim payment to allow you the freedom to secure the best possible costs recovery, then please get in touch with us to discuss your needs further.
For any costs enquiries please get in touch with us at R Costings; you can email me directly at kate@rcostings.co.uk or telephone 01480 244 808."