Guide To Issuing Court Proceedings

Emilene LucasLegal Assessment Team Supervisor

Updated on 1st August 2024

Issuing court proceedings means formally starting a legal case in court.

They are typically considered a last resort when all other attempts to resolve a dispute have failed.

Common scenarios include:

1. If someone owes you money and has refused to pay despite repeated requests;

2. When a party fails to fulfill its contractual obligations;

3. If you have been injured due to someone else's negligence and can't reach a settlement;

4. Disputes over property boundaries, ownership, or tenancy issues.

The article aims to provide a comprehensive guide on issuing court proceedings in the UK, covering all aspects from pre-action protocols to issuing a claim and practical advice for navigating the court system effectively.

By the end, you will have a clear understanding of the process of issuing court proceedings, the legal requirements, and the practical steps you need to take to pursue your claim.

What are Pre-Action Protocols?

Pre-action protocols are guidelines you must follow before you take your case to court.

These protocols are designed to encourage parties to share information and try to settle disputes without needing a court hearing.

If you don't follow these protocols, the court might penalise you, like ordering you to pay the other party's legal costs.

An important step in pre-action protocols is sending a detailed letter before action to the other party outlining your claim and what you want from them. The other party then has a certain amount of time to respond, usually 14 days for simple cases or up to 3 months for more complex ones.

Alternative dispute resolution options

To avoid the time and cost of going to court, there are several methods of alternative dispute resolution you can consider, including:

• Mediation

• Arbitration

• Negotiation

Negotiation is the simplest form of alternative dispute resolution, where you and the other party try to settle the dispute by discussing it directly.

Mediation and arbitration involve using third parties to reach an agreement or decision. Both are less formal than going to court and can be cheaper and faster.

How to start court proceedings

The claim form

Form N1 is the official document used to start legal proceedings in the UK. It outlines the details of your claim and what you want from the defendant.

This form must be completed accurately and submitted to the appropriate court to start the legal process.

When filling out the N1 form, you need to provide specific details, including:

• Your full name and address, as well as the full name and address of the person or organisation you are claiming against;

• A summary of what the claim is about, including the nature of the dispute and its main facts;

• The amount of money you are claiming, or if it's not a money claim, a description of what you are seeking;

• Particulars of Claim, including the background and why you believe the defendant owes you money or has harmed you in some way;

• A statement of truth declaring that the information provided is true to the best of your knowledge. You must sign this section.

After completing the N1 form, you must pay a court fee, which varies depending on the amount you are claiming. This can be done online through the Money Claim Online (MCOL) service, or you can submit the form and payment by post to the appropriate court.

Where to file your claim

Choosing the right court is important for the efficient handling of your case. Filling in the wrong court can lead to delays and additional costs if the case is transferred.

Always consider the value of your claim and consult with a solicitor if you're unsure where to file.

County Court

The County Court deals with most civil cases, including personal injury claims, contract disputes, debt recovery, landlord-tenant disputes, and small claims where the amount claimed is up to £100,000.

Proceedings issued in the County Court are generally less expensive and quicker compared to the High Court, making it suitable for straightforward disputes.

High Court

The High Court handles more complex and high-value cases, typically those over £100,000. It also deals with significant legal issues, including large commercial disputes, corporate insolvencies, and intellectual property cases.

The High Court is divided into three main divisions:

1. The King’s Bench Division

2. The Chancery Division

3. The Family Division.

While legal representation is advisable in both courts, it's almost always necessary when issuing claims at High Court due to the complexity of the cases handled there.

What are the Particulars of Claim?

The Particulars of Claim provides a summary of your case, including the facts and the legal basis for your claim. It informs the defendant about the case they must respond to and forms the foundation for the court's understanding of your dispute.

The Particulars of Claim should include:

• A brief overview of your claim;

• What happened, why you believe the defendant is at fault, and the impact of their actions on you;

• The legal grounds for your claim;

• What you are asking the court to award you;

• A signed declaration that the information provided is true to the best of your knowledge.

In special cases like personal injury claims, you must include additional information, such as your date of birth, details of the injuries, and any medical reports or expenses related to the claim.

Particulars of Claim can be included with the claim form or served separately.

How much does it cost to issue court proceedings?

Filing fees for court proceedings in the UK are determined by the value of your claim.

You can pay your court fees either online or by post. Some courts may allow you to pay in person, however, it's best to check with them directly beforehand.

If you have a low income or are receiving certain benefits, you might be eligible for help with court fees. This can significantly reduce the cost of filing your claim. You can apply for help online or by completing form EX160 and submitting it with your claim form.

Solicitor's fees depend on the complexity of the case and the hourly rates of the solicitors and barristers involved. For more complicated or higher-value claims, you may need a specialist barrister.

Further, if you need to make any additional applications during proceedings, such as to set aside a judgment, these also carry fees.

At Lawhive, we aim to provide transparency when it comes to costs. As such, we provide fixed-fee quotes for the services of specialist lawyers in our network.

Contact us today to get your free quote.

Serving the claim

When you start court proceedings, you need to make sure the defendant receives the claim form. This is called "serving" the claim.

Service of documents means delivering the legal papers to the defendant to inform them about the case. There are several methods you can use to serve the claim form:

• Handing the document directly to the defendant;

• Sending the documents by first-class post to the defendant's address;

• Using a document exchange service;

• Via fax or email if the defendant has agreed in writing to accept service this way;

• Dropping the documents at a location specified by the court or agreed on by the defendant.

You must serve the claim form within four months from the date it was issued by the court. If you don't serve the form within this period, your claim could be invalidated.

If you can't serve the claim form within this time, you can apply to the court for an extension. However, the court does not grant these extensions lightly. You must show that you have made reasonable efforts to serve the form within the original time limit.

Acknowledgment of Service

Once the claim form is served, the defendant must respond by filing an acknowledgment of service within 14 days. This informs the court that the defendant has received the claim and intends to defend it.

If the defendant doesn't acknowledge the claim within the period and doesn't file a defence, the claimant can request a default judgment.

Directions questionnaires

After the acknowledgment of service, both parties will receive a Directions Questionnaire.

This form helps the court understand the case details and decide the best way to manage it. You must complete and return this form by the specified deadline, indicating whether you've tried to settle the case and providing information about witnesses and evidence.

Case management

Case management conferences are meetings where the judge and both parties discuss the progress of the case.

During these conferences, the judge will set timelines for exchanging evidence, filing documents, and other preparatory steps. The goal is to ensure that both parties are ready for trial and to address any procedural issues early on.

Fast Track vs Multi-Track Claims

The court allocates cases to different tracks based on their complexity and value.

The fast track is suitable for straightforward cases with a claim value between £10,000 and £25,000. These cases typically have shorter trials (up to one day) and a faster timetable, aiming to complete within 30 weeks from the first case management directions.

Multi-track is used for more complex cases or those with a value over £25,000. Multi-track cases allow for more flexibility and longer preparation times, accommodating extensive disclosure, witness statements, and expert reports.

Special considerations when issuing court proceedings

Issuing court proceedings involves several unique situations that may require special considerations.

Issuing protective proceedings

Protective proceedings are issued to protect your right to bring a claim, especially when the deadline for filing the claim is near, and you are not ready to proceed fully.

This can happen in cases like personal injury, where the claim must be filed within three years from the date of the accident.

By issuing protective proceedings, you ensure that your claim is officially recognised before the limitation period expires, giving you more time to gather the necessary evidence and complete your case preparation.

Dealing with unresponsive defendants

If a defendant fails to respond within the specified timeline, you can apply for a default judgment. This means the court may decide the case in your favour without a trial due to the defendant's lack of response.

If the defendant requests more time to respond, you should consider whether to agree to an extension.

Post-Judgment Steps

If you win the case and the defendant does not comply with the judgment, you may need to take steps to enforce the judgment, such as applying for a court order to seize the defendant’s assets or garnish their wages.

If either party is dissatisfied with the judgment, they may have the right to appeal. Appeals must be based on specific grounds, such as a legal error or procedural issue, and must be filed within a certain timeframe, typically 21 days from the date of the judgment.

Can I settle out of court after issuing proceedings?

You can settle out of court even after court proceedings have been started. This can save time, reduce costs, and offer a more certain outcome compared to a trial.

Negotiation

Parties can directly negotiate to reach a settlement agreement. This involves discussing the terms and agreeing on a resolution without any formal process.

Each party's solicitor can handle negotiations, making sure that all legal aspects are covered and both parties' interests are protected.

Mediation

Mediation involves a neutral third party, known as a mediator, who helps both parties reach a mutual agreement.

Mediation is less formal than court proceedings and can be quicker and more cost-effective.

Arbitration

Arbitration is more formal than mediation but still outside the traditional court system.

An arbitrator listens to both sides and makes a binding decision. It is often used in commercial disputes.

Part 36 offers

A Part 36 offer is a formal proposal to settle the case. It can be made by either party.

If a Part 36 offer is not accepted and the case goes to trial, the party rejecting the offer may face penalties if the court's final decision is less favourable than the offer.

How long does the court process take?

A straightforward small claims case might be resolved within a few months, while more complex cases in the fast track or multi-track can take 12-18 months from the issue of the claim form to the trial. Appeals and additional hearings can extend this period further.

Can you issue court proceedings against a dissolved company?

When a company is dissolved, it no longer exists as a legal entity. This means you can't directly sue a dissolved company.

However, all is not lost as anyone with a potential legal claim against a dissolved company can apply for its restoration if the company was dissolved following winding up or administration or the company was struck off the register, either compulsorily or voluntarily.

To do this, you need to fill out a Part 8 Claim Form (N208) and pay a court fee of £280. This form, along with a supporting witness statement, should be submitted to the Companies Court.

The Registrar of Companies will review your application and, if the documents are in order, the court can restore the company without a hearing. If not, a hearing will be scheduled.

Once the court issues the restoration order and it is received by the Registrar, the company is restored to the register as if it had never been resolved and you can proceed with your claim against the company.

Having said that, before applying it's important to consider whether the company has assets to satisfy any potential judgment. If the company has no assets, it might not be worth the effort and cost to restore it to pursue a claim.

In most cases, you must apply to restore a dissolved company within six years from the date of its dissolution, unless your claim involves personal injury.

What happens if you issue but don't serve court proceedings?

When you issue court proceedings, you've officially started a legal case by filing the necessary documents with the court. However, serving the proceedings means delivering these documents to the defendant to inform them about the case.

Sometimes, you might issue proceedings but choose not to serve them right away either to preserve the limitation period or encourage the defendant to settle the dispute without going to court.

Once you have issued the proceedings, you have four months to serve the documents on the defendant. If you don't serve the proceedings within the time frame, the claim does not automatically lapse but remains in limbo until further action is taken.

Cost implications

If you decide not to pursue the claim and want to end the proceedings, you can file a notice of discontinuance. This usually makes you liable for the defendant's legal costs up to that point.

As such, it's often advisable to negotiate these costs with the defendant before discontinuing.

Limbo state

If you neither serve the claim nor discontinue it, it remains active but unresolved. This can lead to complications, such as the defendant applying to the court to have the claim struck out and to recover costs.

Court orders

The court can issue orders to either strike out the claim or require you to serve the documents within a specified period.

Ignoring these orders can result in additional costs and sanctions.

Are there any exceptions to the rules on discontinuance?

As we've noted, when you discontinue a claim, you are usually responsible for paying the defendant's legal costs up to the point of discontinuance.

But there are some exceptions to this rule.

Court's discretion

The court has the discretion to order otherwise based on the circumstances of the case. For example, if the defendant behaved unreasonably, the court may decide not to order costs against the claimant.

For example, in the case of Hewson v Wells & Ors, the court ruled in favour of the claimant because the defendant unreasonably delayed providing a deed, causing the claimant to discontinue proceedings.

Small claims track

The general rule about costs doesn't apply to claims allocated to the small track as costs are usually limited to court fees and fixed costs.

That means you won't be liable for the defendant's legal fees upon discontinuance.

Requirement of court permission

In certain situations, you need the court's permission to discontinue. For example if:

• The court has granted an interim injunction;

• The claimant has received an interim payment;

• If there is more than one claimant and not all consent to the discontinuance.

Right to set aside discontinuance

A defendant can apply to have a notice of discontinuance set aside if they believe the discontinuance was inappropriate. They must do so within 28 days of being served the notice.

Subsequent proceedings

If you discontinue a claim and later wish to start a new claim against the same defendant based on the same facts, you will need the court's permission.

This is to prevent abuse of the legal process by repeatedly discontinuing and reissuing claims.

In light of the above, it's advisable to seek advice to understand the potential cost implications fully before discontinuing a claim.

Get help with issuing court proceedings from Lawhive

At Lawhive, our network of experienced litigation solicitors is on hand to make sure you receive informed and effective legal advice.

We take the time to understand your situation and tailor our approach to meet your specific needs.

Furthermore, we are committed to transparency in legal fees. We provide fixed fees up front to provide clear guidance on potential costs from the outset, helping you plan and manage your budget effectively.

To discuss issuing court proceedings with the help of an experienced solicitor, contact us today for a free case evaluation and quote.