Rickard Metals v Cotton (t/a Allmat Enterprises) & Anor

Where defendants are entitled to an interim payment on account of costs, the court may order payment in an amount supported by an unchallenged costs estimate. The court may also stay payment so that the costs sum can be set off against a potential interim payment due to the claimant, particularly where an existing order makes that course appropriate.

The claimant had obtained an injunction which the defendants successfully applied to discharge. The defendants were entitled to an interim payment on account of their costs of that application. Their costs estimate was not challenged. The court was required to determine the appropriate amount and whether payment should be made immediately, in light of an order made by Master Rose concerning an interim payment on account of the claimant’s damages.

1. The defendants were entitled to an interim payment on account of their costs of and occasioned by the application to discharge the injunction.
2. The defendants’ unchallenged costs estimate justified an interim payment of £100,000.
3. Payment was stayed until determination of the claimant’s application for an interim payment under paragraph 4 of Master Rose’s order dated 8 November 2007, or determination of an appeal by the first defendant against that paragraph if successful. The stay enabled the costs payment to be set off against any interim payment ordered on the claimant’s damages claim.

The court made the order in the terms stated.

The judgment refers to an order made by Master Rose dated 8 November 2007, including paragraph 4 concerning an interim payment on account of the claimant’s damages. It also contemplated a possible appeal by the first defendant against that paragraph. No appellate decision is stated.