The dangers of falling foul of the overriding objective

The Jackson reforms, aimed at controlling the costs of civil litigation and improving access to justice, were implemented in April 2013. In the run up to the reform’s implementation, the Court of Appeal made it clear there would be an increased focus by the courts on parties’ conduct, including their compliance with court rules, practice directions and orders.

Over two years later (at the time of writing) it is clear that the courts are implementing the Court of Appeal’s warning with full force.  This is evident from recent case law regarding Part 1 of the Civil Procedure Rules (“CPR”), also known as the overriding objective (“the objective”). The objective makes clear that the courts must deal with cases justly, in a way which is proportionate to the amount of money involved, the importance of the case, the complexity of the issues and the financial position of each party. It is important to note that solicitors and their clients have a positive obligation under Part 1 of the CPR, to help the court to further the objective.

In a case decided in 2015, the High Court refused to allow claimants to amend their particulars of claim a month before their trial was to commence. The basis for the judge’s decision was that in accordance with the objective, it was permissible to refuse a late amendment where there was no good explanation for its lateness. The effect of allowing an amendment to add new claims would be to cause significant extra work for the respondent at a late stage in the litigation process and in turn, it was unjust.

Further, in a case from 2014, the Technology and Construction Court criticised a party for incurring disproportionate costs and the judge decided that said party was in breach of the objective. The court ordered that said party was to pay 50% of the other party’s costs (along with their own!) and £10,000 was expected to be paid on account within 14 days of the judgment.

The two cases above demonstrate the importance of the objective in litigation proceedings. Failure to comply can lead to severe financial consequences for a party falling foul of the objective. Taking professional legal advice can help avoid the potential pitfalls of a lack of compliance with court rules, practice directions and court orders. If you require any timely legal assistance in issuing or defending a claim, please feel free to get in touch with a member of the Dispute Resolution team. 

Thomas Emmett
01245 453847
thomas.emmett@birkettlong.co.uk

 

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.