Dispute Resolution

Question 1

Summary judgment

Answer 1

The court may give summary judgment against a claimant or defendant on the whole of a claim or on an issue if—

(a) it considers that the party has no real prospect of succeeding on the claim, defence or issue; and

(b) there is no other compelling reason why the case or issue should be disposed of at a trial

Question 2

Set aside default judgment

Answer 2

The court may set aside or vary a default judgment if –

(a) the defendant has a real prospect of successfully defending the claim; or

(b) it appears to the court that there is some other good reason why –
(i) the judgment should be set aside or varied; or
(ii) the defendant should be allowed to defend the claim.

The court will also consider whether the person seeking to set aside the judgment made an application to do so promptly

Question 3

Strike out a statement of case

Answer 3

The court may strike out a (part of a) statement of case if it appears to the court –

(a) that the statement of case discloses no reasonable grounds for bringing or defending the claim;

(b) that the statement of case is an abuse of the court’s process or is otherwise likely to obstruct the just disposal of the proceedings; or

(c) that there has been a failure to comply with a rule, practice direction or court order

Question 4

Interim payment

Answer 4

The court may only make an order for an interim payment where any of the following conditions are satisfied –

(a) the defendant against whom the order is sought has admitted liability to pay damages or some other sum of money to the claimant;

(b) the claimant has obtained judgment against that defendant for damages to be assessed or for a sum of money (other than costs) to be assessed;

(c) it is satisfied that, if the claim went to trial, the claimant would obtain judgment for a substantial amount of money (other than costs) against the defendant from whom he is seeking an order for an interim payment whether or not that defendant is the only defendant or one of a number of defendants to the claim;

The court must take into account –

(a) contributory negligence; and

(b) any relevant set-off or counterclaim

Question 5

Interim injunction

Answer 5

American Cyanamid guidelines:

1. Is there a serious question to be tried? Not “vexatious”
2. Would damages be an adequate remedy for a party injured by the court’s grant of, or failure to grant, an injunction? Both applicant and respondent considered
3. Where does the balance of convenience lie?

Applications for search orders and freezing injunctions must be supported by affidavit evidence

When an interim injunction is granted, the court will almost always require the applicant to give a cross undertaking in damages

Question 6

Security for costs

Answer 6

Grounds – D must satisfy the court of two matters before an order can be made:
1. Having regard to all the circumstances of the case, it is just to make an order
2. One or more of the prescribed conditions in the rules are satisfied

Prescribed conditions:
- C is resident out of the jurisdiction (but is not resident in a State bound by the 2005 Hague Convention)
- C is a company and there is reason to believe it will be unable to pay the D’s costs if ordered to do so
- C has taken steps in relation to its assets that would make enforcement of a costs order against it difficult (e.g. dissipation, transfer overseas)
- C has changed address since claim was commenced with a view to evading the consequences of the litigation
- C failed to give an address in the claim form
- C is acting as a nominal C and there is reason to believe it will be unable to pay the D’s costs if ordered to do so

Question 7

Costs order

Answer 7

General rule: unsuccessful party pays for the other party’s costs

Court has a discretion as to costs and can depart from this general rule, taking into account the conduct of the parties

Question 8

Track allocation

Answer 8

Small claims track
- Limited costs recovery and fewer formalities
- No order for disclosure or exchange of witness statements
- PI cases: damages for PSLA less than £1,500
- Limit: £10,000

Fast track
- Complexity band determines the level of fixed costs that can be recovered
- Trial likely to last no longer than 1 day
- Oral expert evidence from 1 expert per party
- Expert evidence from no more than 2 expert fields per party
- Value between £10,000 and £25,000

Intermediate track
- Cases suitable for neither small claims or fast track up to £100,000
- Trial likely to last no longer than 3 days if managed proportionally
- Oral expert evidence limited to 2 experts per party
- Maximum 3 parties (i.e. 2 Cs and 1 D or 1 C and 2 Ds)
- Complexity band determines the level of fixed costs that can be recovered
- Parties are required to endeavour to agree directions and submit them to the Court 7 days before the CMC (if the Court agrees the directions or issues its own directions the CMC will be vacated)
- Value between £25,000 and £100,000

Multi-track
- Value over £100,000
- Claims not suitable for other tracks