In this case, by implementing a proactive strategy, we were able to secure summary decree (judgment) for the full sum sued for comprising over £15,000 of hire and repair costs and inconvenience, plus £5,000 for interest.
The Background
After a road traffic accident in 2020, the pursuer's vehicle required to be repaired and the pursuer required to hire an alternative vehicle for a period of 63 days, while their own vehicle was off the road.
The Strategy
1. Pursuer's Offer
After unsuccessful pre-litigation discussions, a court action was raised. Having considered some of the issues in relation to quantum, and looking to limit the lifecycle of the action, we lodged a 'Pursuer's Offer' (Part 36 equivalent) in the sum of £12,000. As with Part 36 offers in England & Wales, Pursuers' Offers have cost implications for the other side if the Offer is not accepted within a reasonable period.
2. Notice To Admit
The defender did not accept the Pursuer's Offer so we lodged a Notice to Admit as a further attempt to prompt settlement. Notices to Admit can be used by any party and set out the facts and/or issues which that party considers should be capable of agreement. While the primary purpose is to limit the issues in dispute and reduce the length of any evidential hearing, it can also force the other party to examine the merits, or otherwise, of their case at an earlier stage.
A party has 21 days to respond to a Notice to Admit. However, the defender failed to respond. Procedurally, this meant that the defender was therefore deemed to have admitted all of the matters listed within the Notice to Admit. In this case, it left the defender with no defence.
The Outcome
Given the defender no longer had any defence, we proceeded to ask the court to grant summary decree (final judgment). The court agreed and awarded the pursuer the full sum sued for which included repair and hire costs, inconvenience and interest at a rate of 8% from March 2020 – plus costs.
The Additional Payment
As the sum awarded exceeded the Pursuer's Offer of £12,000 an "additional payment" is also due to be paid.
This is assessed as a 50% uplift on all fees incurred by the pursuer after the Pursuer's Offer was lodged.
Key takeaways
1. Be proactive: It is not always sensible to wait for the other side to engage in negotiations. Lodging an early strategic offer can shorten the life cycle of cases and avoid the need for trial.
2. Utilise the available court processes to your advantage: In this case, a Notice to Admit did not just limit the scope of the issues in dispute – it removed them altogether.
