Caliendo & Anor v Mishcon De Reya (A Firm) & Anor
2014
CHANCERY DIVISION
United Kingdom
CORAM
- THE HONOURABLE MR JUSTICE HILDYARD
Areas of Law
- Civil Procedure
2014
CHANCERY DIVISION
United Kingdom
CORAM
AI Generated Summary
The case involved an application by the Claimants for relief from sanctions imposed for failing to timely notify the Defendants of funding arrangements. The court applied the guidance from the Denton case, using a three-stage approach to assess the breach's seriousness, reasons for default, and all circumstances of the case. Ultimately, the court granted relief from sanctions, allowing the Claimants to recover additional liabilities despite the late notice, emphasizing the need to consider all case circumstances to achieve a just outcome.
Judgment
Mr Justice Hildyard :
Nature of this application
This is another of what has become a steady stream of applications made pursuant to CPR 3.9 for relief from sanctions imposed under the rules, in this instance CPR rule 44.3 B.
The Claimants seek relief in respect of their acknowledged failure to serve notice on the Defendants of the existence of (i) a conditional fee agreement (“CFA”) and (ii) an after the event (“ATE”) insurance policy within the period specified by CPR rule 44.15 (1) and paragraph 9.3 of the Practice Direction on Pre-Action Conduct (“the PDPAC”).
Background
The main proceedings in this case relate to the sale and disposal of the interests of the Claimants and others (who have assigned their interests and claims to the Claimants) in shares in one or more corporate entities which owned Queen’s Park Rangers football club, to purchasers connected with the well-known businessmen Mr Bernie Ecclestone and Mr Flavio Briatore. The Defendants were retained and instructed by the Claimants and others in relation to the transaction.
Charles Fussell & Co LLP, who previously acted for the Claimants, sent a letter of claim pursuant to para B2 of the Professional Negligence Pre-Action Protocol to the Defendants on 18 December 2009.
Robin Simon LLP (“Robin Simon”) sent a holding response to the letter of claim on behalf of the Defendants and their professional indemnity insurers on 18 January 2010. Robin Simon (now Triton Global Limited) continues to act for the Defendants and their insurers.
Subsequent to this, the parties engaged in lengthy pre-action correspondence for a number of years until around May 2012 (although this date is disputed by the Defendants).
On 13 February 2013, DLA Piper UK LLP (“DLA”) entered into terms of engagement to act for the Claimants. On 20 February 2013 and 18 March 2013, respectively, the Claimants entered into CFAs with DLA and Counsel in relation to the intended claim against the Defendants. The Claimants also entered into an ATE insurance policy on 20 February 2013.
In a letter dated 11 June 2013, DLA informed Robin Simon that the Claimants were ready to issue proceedings and gave the Defendants until 14 June 2013 to make a sensible offer of settlement, failing which proceedings would be issued and served on 17 June 2013. This letter further notified the Defendants of the funding arrangements.
That was late notice. It is common ground that notice in writing of the funding arrangements was required to