PRACTICE DIRECTION PRE-ACTION CONDUCT - …

1 PRACTICE DIRECTIONPRE- action CONDUCTSECTION I INTRODUCTION1. aims of this PRACTICE DIRECTION are to (1)enable parties to settle the issue between them without the need to start proceedings (that is, acourt claim); and(2)support the efficient management by the court and the parties of proceedings that cannot aims are to be achieved by encouraging the parties to (1)exchange information about the issue, and(2)consider using a form of Alternative Dispute Resolution ( ADR ).2. PRACTICE DIRECTION describes the CONDUCT the court will normally expect of the prospectiveparties prior to the start of are some types of application where the principles in this PRACTICE DIRECTION clearlycannot or should not apply.

2 These include, but are not limited to, for example (1)applications for an order where the parties have agreed between them the terms of the courtorder to be sought ( consent orders );(2)applications for an order where there is no other party for the applicant to engage with;(3)most applications for directions by a trustee or other fiduciary;(4)applications where telling the other potential party in advance would defeat the purpose of theapplication (for example, an application for an order to freeze assets). II deals with the approach of the court in exercising its powers in relation to pre-actionconduct.

3 Subject to paragraph , it applies in relation to all types of proceedings includingthose governed by the PRE-ACTION protocols that have been approved by the Head of CivilJustice and which are listed in paragraph of this PRACTICE III deals with principles governing the CONDUCT of the parties in cases which are notsubject to a PRE-ACTION III of this PRACTICE DIRECTION is supplemented by two annexes aimed at different typesof claimant.(1)Annex Asets out detailed guidance on a PRE-ACTION procedure that is likely to satisfy the courtin most circumstances where no PRE-ACTION protocol or other formal PRE-ACTION procedureapplies.

4 It is intended as a guide for parties, particularly those without legal representation, instraightforward claims that are likely to be disputed. It is not intended to apply to debt claimswhere it is not disputed that the money is owed and where the claimant follows a statutory orother formal PRE-ACTION DIRECTION PRE-ACTION CONDUCTCIVIL PROCEDURE RULESPRE- action CONDUCT PRE-ACTION CONDUCT page 1 PRACTICE DIRECTIONAPRIL 2010 PRE-ACTION CONDUCTPRACTICE DIRECTION (2)Annex Bsets out some specific requirements that apply where the claimant is a business andthe defendant is an individual.

5 The requirements may be complied with at any time betweenthe claimant first intimating the possibility of court proceedings and the claimant s letter IV contains requirements that apply to all cases including those subject to the PRE-ACTION protocols (unless a relevant PRE-ACTION protocol contains a different provision). It issupplemented byAnnex C, which sets out guidance on instructing this PRACTICE DIRECTION together with the Annexes (1) proceedings means any proceedings started under Part 7 or Part 8 of the Civil ProcedureRules 1998 ( CPR );(2) claimant and defendant refer to the respective parties to potential proceedings;(3) ADR means alternative dispute resolution, and is the collective description of methods ofresolving disputes otherwise than through the normal trial process; (see paragraph forfurther information).

6 And(4) compliance means acting in accordance with, as applicable, the principles set out inSection III of this PRACTICE DIRECTION , the requirements in Section IV and a relevant pre-actionprotocol. The words comply and complied should be construed II THE APPROACH OF THE COURTS4. CPR enable the court to take into account the extent of the parties compliance with thisPractice DIRECTION or a relevant PRE-ACTION protocol (see paragraph ) when giving directionsfor the management of claims (see CPR rules (4) and (5) and (1)(e)) and when makingorders about who should pay costs (see CPR rule (5)(a)).

7 Court will expect the parties to have complied with this PRACTICE DIRECTION or any relevantpre- action protocol. The court may ask the parties to explain what steps were taken to complyprior to the start of the claim. Where there has been a failure of compliance by a party thecourt may ask that party to provide an of considering compliance the court will (1)be concerned about whether the parties have complied in substance with the relevant principlesand requirements and is not likely to be concerned with minor or technical shortcomings;(2)consider the proportionality of the steps taken compared to the size and importance of thematter;(3)take account of the urgency of the matter.

8 Where a matter is urgent (for example, anapplication for an injunction) the court will expect the parties to comply only to the extentthat it is reasonable to do so. (Paragraph and of this PRACTICE DIRECTION concern urgencycaused by limitation periods.)CIVIL PROCEDURE RULESPre- action CONDUCT page 2 PRE-ACTION CONDUCT PRACTICE directionAPRIL 2010 Examples of court may decide that there has been a failure of compliance by a party because, forexample, that party has (1)not provided sufficient information to enable the other party to understand the issues;(2)not acted within a time limit set out in a relevant PRE-ACTION protocol, or, where no specifictime limit applies, within a reasonable period.

9 (3)unreasonably refused to consider ADR (paragraph 8 in Part III of this PRACTICE DIRECTION andthe PRE-ACTION protocols all contain similar provisions about ADR); or(4)without good reason, not disclosed documents requested to be for court will look at the overall effect of non-compliance on the other party when decidingwhether to impose , in the opinion of the court, there has been non-compliance, the sanctions which the courtmay impose include (1)staying (that is suspending) the proceedings until steps which ought to have been taken havebeen taken;(2)an order that the party at fault pays the costs, or part of the costs, of the other party or parties(this may include an order under rule (2)(g) in cases allocated to the small claims track);(3)an order that the party at fault pays those costs on an indemnity basis (rule (3) sets outthe definition of the assessment of costs on an indemnity basis).

10 (4)if the party at fault is the claimant in whose favour an order for the payment of a sum ofmoney is subsequently made, an order that the claimant is deprived of interest on all or part ofthat sum, and/or that interest is awarded at a lower rate than would otherwise have beenawarded;(5)if the party at fault is a defendant, and an order for the payment of a sum of money issubsequently made in favour of the claimant, an order that the defendant pay interest on all orpart of that sum at a higher rate, not exceeding 10% above base rate, than would otherwisehave been COMMENCEMENT OF PRE-ACTION considering compliance.