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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 estimates.

 

CPD (Costs Practice Direction) 19 – you do not need to specify the amount of additional liabilities sought.

 

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 commenced.

 

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 [2003]. Main considerations are:

 

Administration of justice

Promptly made application

Intentional failure

Good explanation

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 [2002] – 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.

 

 

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