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Summary of Dispute Resolution for SQE1
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Dispute Resolution notes for SQE1 - I used the textbook from the University of Law for reference for my July 2022 exam
[Meer zien]Voorbeeld 4 van de 32 pagina's
Voorbeeld 4 van de 32 pagina's
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Dispute Resolution – Unit 1. Key Pre-Action StepsDifferent Options for Dispute Resolution
ADR
- Voluntary and confidential (‘without prejudice’)
- Parties choose the process and can withdraw at any time before settlement reached
- ADR should be participated in, unless:
o Obviously inappropriate (eg. an injunction is required); the other party is unlikely to co-operate; or
the other party cannot be trusted to comply with an award
- Failure to engage may result in financial sanctions
Mediation
- Neutral 3rd party is involved who discusses the dispute and possible solutions with the parties with the aim of
reaching a mutually agreed solution
o The outcome is a voluntary agreement which, if not met, must be enforced as a breach of contract
through the courts
Arbitration
- Alternative to litigation (‘parallel’ dispute resolution process)
- May arise through: business contracts containing a clause to submit to arbitration in the event of a dispute;
or parties may agree once a dispute has arisen
o Voluntary, but only in the sense that the parties voluntarily entered into an arbitration agreement or
agreed to decide the matter in this way once a dispute arose
If voluntarily entered, effect is that one party may force the other to arbitrate against their
will
- Dispute decided by a single arbitrator (or a panel) who are usually experts from a particular
field/professional body
o Decision is binding on the parties and enforceable in the courts
Litigation
- Not voluntary, once started neither party can withdraw without paying the opponent’s costs
- Negotiation, is an important means of achieving settlement and should be considered throughout the
litigation process
- 5 stages:
o Pre-commencement
o Issuing of proceedings
o Interim matters
o Trial
o Appeal and/or enforcement
- Civil Procedure Rules say the procedure must be followed by the courts
,Resolving a Dispute Through a Civil Claim
Limitation
- After this date C may still commence the claim but D will have a complete defence
o If D establishes the claim is statue barred, the court will not allow actions commenced outside the
limitation period to proceed
- Court has direction to extend the deadline but will only do so in exceptional circumstances
- Contractual limitation may be stipulated
Nature of action Starting point Length/period
Simple contract The date of the breach of contract 6 years
Tort other than: The date the damage occurs 6 years
- Personal injury
- Actions under the CPA 1987
- Latent damage
Personal injury - Date of the cause of action/the date of 3 years
the knowledge of the person injured
- Children – starts on 18th birthday
Latent damage (in the tort of Later of:
negligence) - The date when the damage occurred; - 6 years
or
- The date on which C first had the - 3 years
knowledge required to bring an action Overriding time limit: 15 years
from the date of the negligence
Parties to a claim
- Important to establish if D is worth suing financially
- Types of claims:
o Specified claim = fixed amount of money (debt owed)
o Unspecified claims = conduct an investigation to determine amount (damages)
Pre-action procedure
PD on Pre-action conduct and protocols (PDPAC)
- Purpose to initiate and increase pre-action contact between parties
o To encourage better and earlier exchange of information so parties may be able to settle fairly and
early without litigation (and to enable proceedings to run efficiently if it is necessary)
,Principles of PDPAC
- C send letter before claim including:
o Concise details of the claim
o Summary of the facts
o What C wants from D (if money, how this is calculated)
o Key documents
- D sends a letter of response:
o Within a reasonable time (14 days, no longer than 3 months)
o Must confirm if the claim is accepted
o If not, explain the reasons
o Indicate if there is a counter claim
o Include key documents
- C replies and the parties consider:
o Negotiation
o ADR
o Appointment of expert(s)
- Stocktake: before issuing proceedings the parties should:
o Review their positions
o Consider whether proceedings can be avoided
o If not, narrow the issues in dispute
- Sanctions for non-compliance:
o Party at fault pays some or all of opponent’s costs (perhaps on an indemnity basis)
o C is deprived of some/all of the interest on damage
o D is required to pay a higher rate of interest on damages
PAP for Debt Claims
- Applies to businesses (inc. sole traders and public bodies) that bring a claim against a debtor who is either an
individual or a sole trader
- Does not apply to business to business debts
- Must give full information on debt owed and how the debt can be paid
- 30 days to respond
PAP for Professional Negligence
- C gives Preliminary Notice
- C sends Letter of Claim
- D acknowledges (within 21 days, then 3 months to investigate and respond)
- D investigates claim
- D sends Letter of Response and/or Letter of Settlement
o Claim totally denied and no settlement offered
Stocktake
C may start proceedings
o Claim admitted in whole/part and/or settlement offered
Negotiations (aim of resolving within 6 months of the Letter of Acknowledgement)
ADR procedure
, Foreign element & choice of forum
- Usually, the parties will be able to nominate the governing law of their choice
o Exceptions: Unfair Contract Terms Act 1977
- Default provisions – Disputes within the EU
o Contract cases: The law it is most closely connected
Sale of goods: the country where the seller has their habitual residence
Supply of goods: where the supplier has their habitual residence
Rights in land and tenancies: where the property is situated
If none of the above apply, applicable law is where the ‘characteristic performer’ of the
contract has their habitual residence
o Tort cases: The law where the damage occurs/likely to occur
Exception:
If the tort is ‘manifestly more closely connected with another country’
Where it involves product liability
- Jurisdiction – Within the EU
o To determine which courts of a Member State have jurisdiction, the following approach should be
adopted:
Exclusive jurisdiction/Exclusive jurisdiction by agreement
[if neither apply]
The basic rule: D must be sued in his local court
Contract cases: where the contract was to be performed
Tort cases: where the harm caused by the tort occurred
- Jurisdiction – Outside the EU
o Service within England and Wales
As long as the claim formed was served on D whilst present in these countries
D could object on the ground that English courts are not the most appropriate
o Service outside England and Wales
Permission of the court must be obtained to serve them outside the jurisdiction
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