Important Amendments to Practice Directions

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The 50th version of the Civil Proceedure Rules came into force on 1st October and they contain a couple of important amendments that I thought it would be helpful to point out. 

Firstly Section 19.4 of the Practice Direction supplementing Parts 43 to 48 has been amended to increase the information that a party has to provide to the other side when a funding arrangement includes an insurance policy. 

The new practice direction requires the level of cover provided by the insurance to be given and, where premiums are staged, the points at which the increased premium is payable. 

There is a new form N251 which provides for these changes.  Section 19.6 of the PD states that the amendments do not apply where the funding arrangement was entered into before 1st October 2009. 

Another important change to providing information about funding arrangements is contained in Practice Direction - Pre-Action Conduct.  Section 9.3 now states that a party MUST inform the other parties about a funding arrangement as soon as possible

"....and in any event either within 7 days of entering into the funding arrangement concerned or, where a claimant enters into a funding arrangement before sending a letter before claim, in the letter before claim."

The use of the word "must" as opposed to the word "should" is significant as the previous cases on giving information about funding arrangements pre-issue which were decided in the receiving party's favour were on the basis that "should" in the PDP being considered means "ought to" which is not the same as "has" or "must".

This amendment I think will mean that those authorities ( Metcalfe v Clipston and Cullen v Chopra ) will not apply from now on.

Andrew

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