Jackson rules on "promptness"

The Court of Appeal has underlined the importance of “promptness” in applications for relief from sanction.

In British Gas Trading Limited v Oak Cash & Carry Limited [2016] EWCA Civ 153, British Gas claimed £200,000 for its supply of electricity to Oak. Oak missed a deadline. An “unless” order extended it but Oak filed the wrong questionnaire. It filed the correct questionnaire 18 days after the deadline and two date after the “unless” order deadline. The defence was automatically struck out.

Lord Justice Jackson, giving the lead judgment in favour of British Gas, held that where an “unless” order has been breached, the court should look at the original breach.

Charles Robinson, partner at Moon Beever, which acted for British Gas, says: “In applying the Denton stage one test of the significance or seriousness of the breach of an ‘unless’ order, the court must consider any underlying breach which lead to the order being made.

“The judgment reaffirms that an application for relief from sanction must be made promptly, irrespective of the ostensibly trivial nature of a breach and any subsequent compliance. The requirement for promptness, and its relevance to the Denton stage three test, is amplified by the proximity of a hearing date.”