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16 October 2014
Issue: 7626 / Categories: Legal News
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Escaping the shadow of Mitchell

High Court overturns overly harsh relief from sanctions ruling

A relief from sanctions ruling which relied heavily on Mitchell principles was overly harsh, the High Court has held.

Ruling in Long v Value Properties [2014] EWHC 2981 (Ch), Mr Justice Barling overturned Master Rowley’s “reluctant” refusal to grant relief after a conditional fee agreement and other documents were submitted after an agreed date. He noted that the defendants had tried to take advantage of the failure to submit on time.

The defendants had argued that the £48,462 success fees of counsel and solicitor were not recoverable because of the non-compliance. The claimants countered that a telephone call, e-mail or fax would have resolved the omission, that no prejudice had been caused, and that they would apply for relief from sanction. Master Rowley had indicated that he had no choice, when he heard the case in January, because he had to apply the principles set out in Mitchell v News Group Newspapers Ltd [2013] EWCA Civ 1537.

However, the case pre-dates the Court of Appeal’s decision in Denton v WH White Ltd & Others [2014] EWCA Civ 906, which clarified the principles on sanctions made in Mitchell, and provided guidance on the interpretation of CPR r.3.9 relating to relief from sanctions for breach of rules, practice directions and orders. According to Denton, the judge should take all the circumstances of the case into consideration and relief should be granted unless the breach is serious or significant.

Granting relief, Barling J said: “The defendants’ behaviour here has been precisely the kind of opportunistic, and non-cooperative conduct in litigation condemned by the Court of Appeal in Denton. Had the defendants taken a different course the matter could probably have been completely resolved within the overall period of the extension of time which they applied for and were granted by the claimant, or very soon thereafter.”

NLJ columnist Professor Dominic Regan, of City Law School, says: “So many judges were thrown by the Mitchell decision.

“This was an example of someone knowing that their order was wrong yet still making it (hence the reluctance comment). The outcome was an utter travesty. Denton has done so much good.”

Issue: 7626 / Categories: Legal News
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MOVERS & SHAKERS

Penningtons Manches Cooper—Jean-François Le Gal

Penningtons Manches Cooper—Jean-François Le Gal

Penningtons Manches Cooper strengthens international disputes team with appointment of leading arbitration partner

Shakespeare Martineau—Aaron Sanders & Kate Saunders

Shakespeare Martineau—Aaron Sanders & Kate Saunders

Shakespeare Martineau strengthens trust and estates disputes team with new appointments

Bellevue Law—Shannon Moore

Bellevue Law—Shannon Moore

Bellevue Law strengthens employment disputes and international advisory capability with senior associate appointment

NEWS
Developers in areas with poorly performing councils can apply directly to the Planning Inspectorate for permission under section 62A of the Town and Country Planning Act 1990
When does a solicitor’s retainer become a contentious business agreement? The Court of Appeal’s decision in Broadfield Law UK LLP v Barnes shows that listing hourly rates alone will not do, leaving firms and clients uncertain about their rights over bills
MPs cannot simply resign their Commons seats. Instead, they take a nominal Crown office, usually the Chiltern Hundreds or Manor of Northstead, which disqualifies them from sitting
A divorced woman has secured funding to participate in her former husband’s inquest after the Legal Aid Agency reconsidered repeated refusals
The Thirlwall Inquiry has exposed a ‘complete failure’ to protect babies at the Countess of Chester Hospital, but its recommendations must now be put into practice
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