Topic 8: Case&Costs Management + Discontinuance

Question 1

What is the overriding objective?

Answer 1

To deal with cases JUSTLY and at PROPORTIONATE cost

Question 2

When exercising its power of case management in a case where one of the parties is a LiP, what must the court do?

Answer 2

Have regard to the fact that one party is LiP

Question 3

What can the court do if it believes a case should be dealt with in the HC instead of the County Court, or vice versa?

Answer 3

Can order that the case be transferred

Under Senior Courts Act

(Can also transfer between divisions)

Question 4

After the pleadings have been completed what is the next step in the process?

What does this do and how can the parties respond and what must the parties then do?

Answer 4

Notice of Proposed Allocation

Tells the parties which track the court thinks is suitable for the case, parties can object if they think different track more appropriate

Parties then told to complete a directions Questionnaire and payment of the allocation fee

Question 5

If the stated value of the claim is less than £50,000 when should the parties file and exchange budgets?

What about if the value is £50,000 or more?

Do LiPs have to comply with this?

When a party has complied and filed their budget, what must all the other parties do? What is the time limit on this?

Answer 5

Less than £50,000 (More than £25k because only applies to multi track) = parties should file and exchange budgets with their directions Questionnaire (first page of budget only)

£50,000 + = file and exchange budgets no later than 21 days before the 1st case management conference

LiP = DO NOT have to comply

Once a party has complied with obligation to file a budget, all other parties (except LiP) must file an agreed budget discussion report no later than 7 days before the 1st case management conference

Question 6

If a party fails to file a budget when they are required to do so, how will the court treat them?

Answer 6

Party will be treated as only having filed a budge comprising only of the applicable court fees

(Could apply for relief from sanctions)

Question 7

1. What can a party request when completing the directions Questionnaire?
2. What happens if all of the parties request this?
3. What happens if only 1/some of the parties request this?
4. What if the parties need longer?
5. What happens if a settlement is reached during this?

Answer 7

1. Can make a written request for the proceedings to be stayed while the parties try to settle by ADR or other means
2. If all the parties request a stay — the proceedings will be stayed for ONE MONTH and the court will notify the parties of this
3. Then the court will consider if it is appropriate they will direct a 1 MONTH stay or other period as court considers appropriate
4. Stay can be extended
5. If settlement is reached then C must tell the court

Question 8

What happens if the parties indicate in their directions Questionnaire that they agree to mediation?

Answer 8

Claim will be referred to the Mediation Service

Question 9

When will the case be allocated to a track?

Answer 9

Final allocation to track will happen after parties have filed their directions Questionnaire (or after the period of an (ADR)stay)

Question 10

When is the SMALL CLAIMS TRACK is the normal track for:

Normal money claims?

PI?

Tenant and landlord claims?

Answer 10

Normal money claims =
Up to £10,000

PI =
Value of claim not more than £10,000, and PSLA claim is not more than £1,000

Tenant and landlord =
When tenant seeking order requiring landlord to carry out repairs and cost is not more than £1,000 and any other claim for damages is not more than £1,000

Question 11

When is the FAST TRACK the normal track for?

When is the MULTI TRACK the normal track?

Answer 11

1. Claims that do not fall into small claims track
2. Claims that have a value not more than £25,000

But only if the court considers that:
A. Trial is likely to last for no longer than 1 day; and
B. Oral expert evidence will be limited to 1 expert, per party, per field and only 2 expert fields

MULTI TRACK = when fast and small doesn’t apply

I.e over £25k or lower value claims where trial will last longer than 1 day, or more experts/complex expert evidence needed

Question 12

What track will a PI claim be allocated to if the claim for PSLA is £2,000 but the overall value of the claim is £5,000?

How will the court allocate a claim that has no financial value?

Answer 12

Fast track

________

Allocated to the track court considered most suitable having consideration to the factors

Question 13

What are the factors that the court must consider when considering whether to allocate a claim to the normal track for a claim of its nature?

How will the parties know what track the case has been allocated to?

Can the court re-allocate the claim later if needed?

Answer 13

A. Financial value of claim 
B. Nature of remedy sought 
C. Complexity of facts/law/evidence 
D. Number of parties/possible parties 
E. Value of any counterclaim/pt 20 claim and complexity of issues within it 
F. Amount of oral evidence required 
G.  Importance of claim to others (not parties to claim) 
H. Views expressed by parties 
I. Circumstances of the parties 

———
Parties will know because once decision is made, court will serve notice of allocation on every party

———
Yes

Question 14

What directions are normally given in Small Claims Track cases?

Answer 14

Standard Directions

Question 15

What matters will be dealt with by directions in a Fast Track case?

If a party wants to vary the date the court has fixed for the trial?

Answer 15

Disclosure, service of WS and expert evidence

Party must apply to the court

Question 16

In MULTI TRACK cases, if the party is represented who must attend the case management conferences and pre-trial reviews?

In relation to directions in MULTI TRACK cases, what should the parties endeavour to do?

What happens if the court approves the agreed directions?

What happens if directions cannot be agreed?

Answer 16

Legal representative familiar with the case and with sufficient authority to deal with any issues which are likely to arise

Parties must endeavour to agree directions as submit these at lease 7 days before any case management conference

If the court approves the directions parties will be notified by the court and case management conference will be vacated

If they cannot be agreed court will fix a date for a case management conference or court may give its own directions

Question 17

What is a costs management conference?
How should this be conducted?

When does a multi track case NOT have to file a costs budget?

Answer 17

Hearing which is solely for the purpose of costs management
Should be held over phone or in writing where practicable

If the value is more than £10 Million

Question 18

1. Who may discontinue a claim?
2. When may proceedings be discontinued?
3. When is permission needed to discontinue proceedings?
4. When is consent needed to discontinue proceedings?
5. What happens if the party cannot get the consent needed?

Answer 18

1. A Claimant or any party in the position of a party (i.e a D in a counterclaim or third party claim)
2. At any time unless permission or consent is required
3. Permission from the court is if an interim injunction has been granted or any party has given an undertaking to the court
4. Consent from the other side in the case of interim payments, or consent of all other claimants if there is more than one C
5. Then court’s permission is required

Question 19

What must the C do to discontinue a claim?

What does the notice need to state?(2) and what needs to be attached?(1)

When does the discontinuance take effect?

Answer 19

1. Get permission or consent if needed
2. If consent or permission not needed or has been sought — C then needs to file a notice of discontinuance and serve a copy of it on every other party

Notice needs to state that C has served it on all other parties and if there is more than 1 D, notice needs to specify against which D the claim is discontinued

If the C needed to get consent, cpu of the consent must be attached to the notice

Discontinuance will take effect on the date of service of the notice

Question 20

Who is responsible for the costs when a claim is discontinued?

What is the exception to this rule?

What happens if proceedings are only partly discontinued?

Answer 20

The general rule is that the party discontinuing pays the costs

Exception is where there has been a change of circumstances

If only partly discontinued, discontinuing party is liable got costs relating the part of proceedings which has been discontinued but those costs will not be asses until the conclusion of the rest of the proceedings

Question 21

Can a C who discontinued a claim make another claim against the same D?

Answer 21

C would need the permission of the court to make another claim if:
the claim was discontinued after D has served their defence, and
the new claim arises out of the same or substantial the same facts as those relating to the discontinued claim

Question 22

What tracks does costs management apply to?

Answer 22

MULTI TRACK only (Does not apply is total value of the claim is above £10 Million)

Question 23

When will a Costs Management Order be made?

When will a CMO not be made?

What must the court be convinced of before approving costs?

What type of costs would a CMO relate to?

Answer 23

To agree an budget

Will not be made if courts satisfied that costs can be managed without an order

Court must be satisfied that costs are proportionate and reasonable

CMO will relate to future costs not those already incurred

Question 24

Once a CMO has been made what does this mean?

Can a costs budget be amended?

If amendment are made, what must be done in relation to the amended budget?

What if the other parties do not agree to the amendments?

What can the Court then do?

Answer 24

Means that the court will thereafter control the parties budgets in respect of recoverable costs

Amended only if significant developments warrant such revisions

Amended budge needs to be submitted to other parties for agreement

If other parties do not agree then the amending party must submit it to the court with a note explaining the changes and explaining other parties objections

Court approve, vary or disapprove the amendments
Then needs to be refilled and reserved

Question 25

When a CMO has been made how will costs be assessed?

Answer 25

On the standard basis

Question 26

1. What statue applies to interest POST judgment? And what is the rate of interest?
2. What statue applies to interest PRE judgment? And what is the rate of interest?

In PI cases what is the normal rate of interest?

When does interest start running?

Answer 26

1. s.69 County Courts Act 1984 — 8% per annum simple
2. S.17 Judgments Act 1838 — 8% per annum simple

PI:
General Damages = 2% per annum simple
Special Damages = Normally 1/2 Special account rate

Interest starts running on the date of the judgment

Question 27

If a D wants to set aside a notice of discontinuance what must they do?

Answer 27

May apply to have the notice of discontinuance set aside, should be WITHIN 28 days of the notice do discontinuance being served on them