The next in the series was going to be a review of the rules and principles relating to pre-action conduct. However Kerry Underwood has written a post that deals with this issue comprehensively and I have nothing to add. Here we look at one example of problems caused by issuing without compliance...
From a receiving party pov I am concerned that this judgment tips too far in the paying party’s favour. Cost-only proceedings are incredibly effective at making a paying party get on with it. With no risk of a costs liability or interest, this decision encourages a switched on paying party to ask general questions to present to veneer of genuine enquiry whilst the intention is nothing more than to delay. I have regular tardy opponents who don’t make offers until 6-8 weeks after £5000 bills are served, who are now quoting this case and asking for things that ought to be subject to Pamplin.
In my opinion, a fairer way to deal with prematurity is for the court to look at the matter after the bill of costs has been assessed or agreed. If the bill hasn’t been agreed and therefore it is to be assessed then the proceedings were not premature. If the bill is agreed the day after proceedings are issued then they might have been premature.
I am also concerned that this decision coupled with Longman v Feather and Black will encourage defendants to fight stiffly on the costs of negotiation (though Longman does have some holes including the fact that the judge seemed to think you can issue costs-only proceedings to deal with the issue of the costs of the negotiations – which clearly you cannot as the liability to pay costs has not been agreed!)