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The amount of the additional liabilities does not have to be disclosed until the
conclusion of the proceedings (including the time for appealing has expired).
CPR 44.15 – information and any changes in information must be detailed in form N251
Notice of Funding. Where a Notice of Funding is filed after a claim has been allocated
to track a new estimate of costs must be filed and served to replace all previous
CPD (Costs Practice Direction) 19 – you do not need to specify the amount of additional
CPD 19.2 – N251 should be served and filed with claim form when issuing proceedings,
ensuring that enough copies are enclosed for all parties.
The N251 must be served within 7 days of entering a CFA if proceedings have already
If you are a Defendant acting under a CFA, the N251 should be filed and served with
the first document (usually Acknowledgment of Service or Defence).
Information to be included within the Notice of Funding –
- details of insurance
- whether CCFA
- date of the agreement
- identify the claim to which the CFA relates
- the name of the insurer / trade union
CPD 19.2(5) – Notice of Funding is not required prior to the commencement of proceedings
but is probably recommended.
Here reference to the Pre-action Protocol Practice Direction 4A.1 where a funding
arrangement has been entered into it is recommended that the other side be informed.
This section potentially conflicts with CPD 19. Cases to consider:
Metcalfe –v- Clipston
Bednash –v- Tesco
Hardcastle & Hardcastle –v- Leeds & Holbeck Building Society
Carter & Dunbar –v- Rostron, Birkenhead CC the success fee was disallowed for not
serving an N251 despite the fact that the other side had been informed pre-proceedings.
CPR 44.16 and CPD 20 deals with recovery of the success fee from the client.
CPR Rule 3.9 – relief from sanctions – for circumstances where allowed, see Wilkins
–v- Plymouth Community Services . Main considerations are:
Administration of justice
Promptly made application
CPR 44.3B – no success fee is recoverable for the period of delay where CPR 44.15
not complied with.
Ashworth –v- Peterborough Football Club  – did disclose the likely amount of
the success fee during the proceedings but not the premium. In practice parties are
not obliged to disclose either.