Solicitors Qualifying Examination (SQE) Dispute Resolution (FLK1) Syllabus

What is default judgment and when can a claimant obtain it?

Judgment without a trial under CPR 12, obtainable where the defendant has failed to file an acknowledgment of service or a defence within the relevant time limit. For specified sums it can be requested administratively; otherwise it may require a court hearing on quantum.

On what grounds may a default judgment be set aside under CPR 13?

It MUST be set aside if wrongly entered (e.g. time had not expired). It MAY be set aside if the defendant has a real prospect of successfully defending the claim, or there is some other good reason — and the application is made promptly.

What must particulars of claim contain (CPR 16.4)?

A concise statement of the facts relied on; details of any interest claimed (and the basis/rate); and any specific matters such as fraud, misrepresentation, or aggravated/exemplary damages. They must be verified by a statement of truth.

What three things must a defence do in response to each allegation (CPR 16.5)?

For each allegation the defendant must state whether it is (1) admitted, (2) denied (with reasons and the defendant's own version), or (3) not admitted (requiring the claimant to prove it). Allegations not dealt with are deemed admitted (subject to a general denial of quantum).

What is a Part 20 claim and give two examples?

An 'additional claim' under CPR 20 — a claim other than the claimant's claim against the defendant. Examples: a counterclaim by the defendant against the claimant; a claim by the defendant against a third party for a contribution or indemnity (Part 20 defendant).

What is the statement of truth and what is the consequence of a false statement?

A signed declaration that the maker believes the facts stated are true, required on statements of case, witness statements, etc. A false statement made without an honest belief in its truth may be punished as contempt of court (proceedings brought by/with permission of the court or AG).

When may a party amend a statement of case (CPR 17)?

At any time before it has been served, without permission. After service, only with the written consent of all other parties or with the court's permission. The court applies the overriding objective and considers prejudice and lateness.

Can an amendment be made to add a new claim after the limitation period has expired, and on what basis?

Generally no, but the court may allow it where the new claim arises out of the same facts (or substantially the same facts) as an existing claim, to correct the name of a party, or to alter the capacity in which a party claims (CPR 17.4 / Limitation Act s35).

Under CPR 19, on what general test may the court add or substitute a party?

The court may add a party if it is desirable to resolve the matters in dispute or there is a connected issue, and may substitute a party where the existing party's interest/liability has passed or the change is necessary. Adding/substituting after limitation has expired is restricted to specified situations under CPR 19.6.

What are the three case-management tracks and their financial scope?

Small claims track: up to £10,000 (£1,000 for most PI/housing disrepair). Fast track: £10,000–£25,000. Intermediate track: £25,000–£100,000 (less complex). Multi-track: over £100,000 or complex cases. Allocation also depends on complexity, witnesses, and trial length.

What is the directions questionnaire and the costs/complexity bands of the intermediate track?

A directions questionnaire (filed after a defence) helps the court allocate the case. The intermediate track uses fixed recoverable costs assigned to one of four complexity bands (1–4), with the band reflecting the case's complexity and value.

What is a costs management order and a costs budget (Precedent H)?

In multi-track cases (generally under £10m) parties file and exchange costs budgets (Form Precedent H) setting out incurred and estimated future costs per phase. The court reviews and may make a costs management order recording agreed/approved budgets, which then constrain recoverable costs on assessment.

What is the general test for granting an interim application, and what is the procedure?

Applications are made on notice using Form N244 supported by evidence (usually a witness statement), with the applicant generally giving at least 3 clear days' notice before the hearing. The court applies the overriding objective; specific applications have their own tests.

State the American Cyanamid principles for granting an interim injunction.

(1) Is there a serious question to be tried? (2) Would damages be an adequate remedy for the claimant (if so, refuse)? (3) Would the claimant's cross-undertaking in damages adequately compensate the defendant? (4) Where does the balance of convenience lie? (5) The court may consider the status quo and merits as a tie-breaker.

What is a freezing injunction and a search order, and what type of relief are they?

A freezing injunction (Mareva) restrains a party from dissipating or removing assets from the jurisdiction. A search order (Anton Piller) permits entry to premises to search for and preserve evidence. Both are draconian interim remedies, usually granted without notice with strict safeguards.

What is summary judgment (CPR 24) and on what test is it granted?

Judgment without a full trial where a claim/defence has 'no real prospect of success' AND there is no other compelling reason for a trial. It may be sought by claimant or defendant on the whole claim or a particular issue.

What is an interim payment (CPR 25) and when can it be ordered?

A payment on account of damages/debt before final judgment. The court may order it where the defendant has admitted liability, judgment has been obtained, or the court is satisfied the claimant would obtain a substantial sum at trial. The amount must not exceed a reasonable proportion of the likely final judgment.

What is 'standard disclosure' and what does it require a party to disclose (CPR 31)?

Disclosure of: documents on which a party relies; documents that adversely affect its own or another party's case; and documents that support another party's case — together with documents required by a relevant practice direction. Disclosure means stating a document exists or has existed.

What is the duty to conduct a 'reasonable search' for disclosure, and what factors affect its extent?

A party must make a reasonable and proportionate search for disclosable documents. Relevant factors: the number of documents, the nature and complexity of proceedings, the ease and expense of retrieval, and the significance of any document likely to be located.

Distinguish legal advice privilege from litigation privilege.

Legal advice privilege: confidential communications between lawyer and client for the purpose of giving/receiving legal advice (no litigation needed). Litigation privilege: confidential communications between lawyer/client and third parties, where the dominant purpose is litigation that is pending, reasonably contemplated or existing.

What is the right of inspection, and on what grounds may a party withhold inspection?

A party may inspect any disclosed document, except where: the document is no longer in the disclosing party's control; the party has a right/duty to withhold inspection (e.g. privilege); or inspection would be disproportionate (the right being limited under CPR 31.3(2)).

What is the general rule on the form of evidence at trial and the requirement for expert evidence?

Evidence of fact at trial is generally given orally in public, with witness statements standing as evidence-in-chief. Expert evidence is restricted to that which is reasonably required to resolve proceedings and requires the court's permission (CPR 35); the expert's overriding duty is to the court, not the instructing party.

What is the procedure and notice requirement for relying on hearsay evidence at trial?

Hearsay is admissible in civil proceedings (Civil Evidence Act 1995). A party intending to rely on hearsay must give notice and, if requested, particulars; failure does not make it inadmissible but the court may attach less weight and penalise in costs. The opponent may apply to call the maker for cross-examination.

What is a witness summary and when is it used?

Where a party cannot obtain a signed witness statement, it may, with permission, serve a witness summary — a summary of the evidence the witness would give (or, if not known, the matters on which the party proposes to question the witness) — to comply with directions for exchange of evidence.

What is the standard of proof in civil cases and on whom does the burden lie?

The standard is the balance of probabilities (more likely than not, i.e. >50%). The legal burden generally lies on the party asserting a fact — typically the claimant for the elements of the claim and the defendant for any affirmative defence.

What is the general rule on costs following judgment (CPR 44.2)?

Costs are in the court's discretion, but the general rule is that the unsuccessful party pays the successful party's costs ('costs follow the event'). The court may depart from this considering conduct, partial success, and any admissible offers to settle.

Distinguish the 'standard basis' from the 'indemnity basis' of costs assessment.

On the standard basis, costs must be proportionate and reasonable, and any doubt is resolved in favour of the paying party (proportionality can override reasonableness). On the indemnity basis, costs need only be reasonable, proportionality does not apply, and doubt is resolved in favour of the receiving party — usually yielding a higher recovery.

Distinguish summary assessment from detailed assessment of costs.

Summary assessment: the court assesses costs immediately at the end of a hearing (common for fast-track trials and interim applications lasting under a day), using a costs statement (N260). Detailed assessment: a separate later procedure (CPR 47) where the receiving party serves a bill and a costs officer assesses it, used for larger/multi-track costs.

What permission is required to appeal and what is the test for granting it?

Permission to appeal is generally required (from the lower court or appeal court). It will be granted where the appeal has a real prospect of success, or there is some other compelling reason for the appeal to be heard (CPR 52.6).

On what grounds may an appeal be allowed (CPR 52.21), and is it a rehearing?

An appeal is normally a review (not a rehearing) of the lower court's decision and is allowed where the decision was 'wrong' or 'unjust because of a serious procedural or other irregularity'. New evidence is admitted only exceptionally (Ladd v Marshall principles).

List the principal methods of enforcing a money judgment in the County/High Court.

Taking control of goods (warrant/writ of control via bailiffs/HCEOs); third party debt order (freezing a debt owed to the judgment debtor, e.g. bank account); charging order (over land/securities, with possible order for sale); attachment of earnings order; and insolvency proceedings (bankruptcy/winding up).

What are the main forms of ADR, and what is the key advantage of mediation over litigation?

Negotiation, mediation, conciliation, early neutral evaluation, expert determination, and arbitration. Mediation (a facilitated, without-prejudice, confidential negotiation by a neutral third party) is non-binding until settlement is reached, preserves relationships, is cheaper and faster, and gives parties control over the outcome rather than an imposed judgment.