MITIGATING THE IMPACT OF THE COURT FEES INCREASE 1: LIMITATION STANDSTILL AGREEMENTS

The general view of the court fee increases is well known.  The increases are based on inadequate research and will have a major detrimental effect on the economy as well as the interests of justice.  Since the increases are likely to come into force soon it is important that litigators examine ways to mitigate the effect of the increase.

This is the first of a series of posts dealing with ways of mitigating the impact of the increases.

The first, and most obvious way, is not to issue at all.  If the matter is likely to be resolved but prognosis is uncertain then the most obvious way is to enter into a “limitation standstill” agreement.

LIMITATION STANDSTILL AGREEMENTS

There is some useful guidance to be found online.

GET IT IN WRITING AND MAKE THE TERMS ABSOLUTELY CLEAR

It is wise to turn to one of the precedents.

  • Any agreement must be in writing.
  • It should clearly describe the parties and the dispute.
  • The date of the termination of the agreement must be clear and set out with precision. (For instance a “further six months” can be construed as six months from the date of the agreement or six months from the date of the expiry of the limitation period).

PROBLEM AREAS

There may be problems in agreeing extensions of time in relation to accidents relating to air travel and similar issues. After two years the right of action is extinguished.  Great caution is needed.