CPR 7.7: A hidden gem for defendants
The ordinary rule (CPR 7.5) is that the claimant issues a claim form and then has 4 months to serve it. Less often discussed is a provision which, if used in the right way, can be an effective tool for defendants and disastrous for unprepared claimants (CPR 7.7).
What is the rule in CPR 7.7?
Once a claim form has been issued, a defendant can serve a notice on the claimant, demanding that he serve the claim form or discontinue the claim within a specified period. The specified period must be at least 14 days after service of the notice under CPR 7.7.
What happens if the claimant doesn’t comply?
If a claimant fails to comply, the defendant can apply to the court to have the claim dismissed.
When might a defendant want to utilise this?
By setting an early deadline for service of the claim form, defendants can utilise CPR 7.7 to put pressure on unprepared claimants, which might result in the claimant scrambling to particularise their claim or even abandoning it (CPR 7.4 requires particulars of claim to be served within 14 days after service of the claim form). This can prove effective in cases where claimants, who do not have a strong claim, have issued proceedings to put pressure on the defendant to make a quick settlement offer. Forcing the claimant to serve the claim form and particularise their claim may ‘call their bluff’ and cause them to abandon their claim or accept a lower settlement offer.
However, this tool is not often invoked by defendants because: i) they have to be aware a claim form has been issued; ii) it can quickly advance the litigation against them; and iii) it can distract the parties from sensible and constructive commercial settlement discussions. Invoking CPR 7.7 is, therefore, a high-risk strategy. Nevertheless, defendants should always have this tool in mind when considering their options.
Please contact Laurens Zhang, Julian Prentice, or another member of our litigation team if you have any queries.