16. Interim Payments and Security for Costs
The gateways, evidence and discretionary considerations for interim payments and security for costs.
How to study for BSB Civil Litigation
Prepare separately for closed-book recall and open-book application while keeping every step anchored to the exact syllabus version for your sitting.
Core concepts
Concept 1
An interim payment requires a CPR gateway and must remain within a reasonable proportion of the likely final judgment after accounting for relevant set-off, counterclaim and contributory issues.
Exam cue: Identify the precise CPR gateway before discussing general fairness.
Concept 2
Security for costs requires a specified jurisdictional condition and a just exercise of discretion, including the risk of stifling a genuine claim.
Exam cue: For interim payment, estimate the conservative likely award rather than the claimant's pleaded maximum.
Concept 3
Both applications depend on evidence about merits, value, means, enforcement risk, timing and the practical terms of any order.
Exam cue: For security, separate inability to pay from a condition such as overseas enforcement or company impecuniosity and then assess discretion.
Risk pitfalls and guardrails
Treating a strong claim alone as sufficient for an interim payment without a rule-based gateway.
Guardrail: Do not import a rule or commentary paragraph merely because the White Book cross-refers to it; the BSB syllabus expressly defines what is examinable.
Ordering an amount that fails to account for counterclaim, set-off or contributory negligence.
Guardrail: Do not import a rule or commentary paragraph merely because the White Book cross-refers to it; the BSB syllabus expressly defines what is examinable.
Using security for costs as punishment or as an automatic response to a claimant of modest means.
Guardrail: Do not import a rule or commentary paragraph merely because the White Book cross-refers to it; the BSB syllabus expressly defines what is examinable.
Memory anchors
Interim-payment gateway
The application must satisfy one of the conditions specified in CPR 25.7.
Reasonable proportion
The payment must not exceed a reasonable proportion of the likely final judgment.
Adjust the estimate
Account for set-off, counterclaim and contributory negligence where relevant.
Security gateway
Establish a CPR 25.13 condition before the court exercises its just discretion.
No stifling
Consider whether security would improperly prevent a genuine claim and whether the risk can be addressed proportionately.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
The defendant admits liability to pay damages but quantum will be tried next year. What interim relief may the claimant seek?
The claimant has judgment for damages to be assessed. Does that create an interim-payment gateway?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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