1. What if you didn’t have to wait for a court judgment to get the money you’re owed? Sounds too good to be true, right?
2. Let me give you a little-known legal hack – “Interim Payment (“IP Application”), to unlock cash flow while your case is still in play.
3. I’m not going to dive into complicated legal cases or quotes by judges. Clients usually want to know one thing: “How do I get my money back?” My answer is simple: if you’re looking for quick relief, an IP application might be your best bet.
4. When a client sues someone who owes them money, the main goal is usually to get that money back. Sure, you might also want to teach the debtor a lesson or two about paying debts, but mostly, you’re frustrated because the debtor refused to pay for services or goods provided. As a lawyer, I’d agree: the client has every right to want their money back.
5. Now, let’s talk about a quick way you can try to get your money while the lawsuit is still ongoing. This is where the IP Application comes in. Under the Rules of Court 2012, a Plaintiff (the claimant aka YOU) can apply to the court for a temporary payment from the defendant, while the case is still being decided. But remember, this payment is temporary, and the defendant (the debtor) might have to pay it back later. To get the IP, the Plaintiff needs to meet certain requirements.
6. One thing the Plaintiff needs to prove is that they’re facing financial hardship because of the delay in getting the money they’re owed. They need this quick relief to help them get by until the case is settled.
7. An IP application isn’t just for personal injury claims. It can also be used in cases like:
(a) Contract disputes
(b) Wrongful death
(c) Product liability
(d) Wrongful dismissal
(e) Property damage
(f) Misappropriation of funds
(g) Trespassing on land
8. I hope that the short writeup above gives a better insight into the intricate world of ROC. For any questions and/or potential engagements, do drop me an email at kelvin@llml.com.my.