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SQE1: Dispute Resolution

SQE1 · Work through your exam, one topic at a time.

All guide sections

Dispute Resolution

The framework

The Civil Procedure Rules are governed by the overriding objective (r 1.1): dealing with cases justly and at proportionate cost. Parties must actively assist the court (r 1.3) and the court manages cases actively (r 1.4). Pre-action protocols and the Practice Direction on Pre-Action Conduct require investigation and exchange of information before issue; non-compliance leads to costs sanctions and stays. Halsey v Milton Keynes confirms that unreasonable refusal to mediate can be penalised in costs.

Limitation

Contract: six years from breach (twelve for deeds). Tort: six years (three for personal injury). Defamation: one year. Investigate accrual dates early - a favourite examination trap.

Allocation

Small claims track up to £10,000; fast track £10,000–£25,000; multi-track above £25,000. Value is only one criterion; complexity and the parties' means also matter.

Key applications

Default judgment (r 12) is available only for money claims and not where a defence has been filed. Summary judgment (r 24) requires the respondent to show no real prospect of success. Strike out (r 3.4) targets statements of case disclosing no reasonable grounds. Relief from sanctions (r 3.9) applies the three-stage Denton test.

Part 36

A valid offer must be in writing, be expressly a Part 36 offer, and specify a minimum 21-day acceptance period. If a claimant obtains judgment at least as advantageous as their own offer, they gain enhanced interest (up to 10% above base), indemnity costs and an additional amount of 10% of damages capped at £75,000.

Rule of thumb: always identify the track, the limitation date and any Part 36 offers before analysing litigation strategy.