CPR Part 8 Claims

We’ve been refreshing our memories on Part 8 claims and when to use this procedure… we all need to blow away the cobwebs now and again! Now that we’re refreshed, let’s summarise for you.

The Part 8 procedure is an alternative to the usual Part 7 path. It’s considered a simpler route to resolving disputes that don’t have multiple issues to be considered and therefore don’t require lengthy and complicated pleadings.

However, don’t confuse Part 8 claims with being a ‘shorter trial scheme’. The Courts will still have full discretion over the hearing date and whether the claim should proceed as a Part 7 claim.

 When should we be opting for the Part 8 claim procedure?

First things first, consider the facts of the case. There is no ‘one size fits all’ approach when it comes to Part 8 and whether a claim should proceed as a Part 8 is very fact dependent. A starting point is whether there is a dispute over the facts. That’s not to say that Part 8 claims won’t consider any disputes over fact, but if the claim has many factual discrepancies, it’s likely that the Part 8 procedure will not be appropriate.

To give an example, a Part 8 claim may be the way forward if you are in the middle of a contractual dispute where a certain clause or term in the contract is being interpreted differently between the parties. In the circumstances, it may be sensible to consider a Part 8 claim to have the Court make a determination on the correct interpretation.

Other examples may include a trustee’s entitlement to expenses under a trust deed or a determination on an adjudication procedure prior to commencing adjudication proceedings. In addition, if you are unhappy with an adjudicator’s determination, you may wish for a declaration from the court on the determination which may be possible via the Part 8 procedure. But again, these examples should not be taken as precedents and remember to think to yourself, does the claim require an extensive factual determination? If so, think Part 7.

If the claim does not require disclosure of documents or input from an expert witness, then the Part 8 procedure may be more suitable.

What are the key differences to Part 7 claims?

In a Part 8 claim, if your opponent does not respond within 14 days of being served with your claim you are not able to apply for judgement in default. Therefore, if you suspect that your opponent may not respond and you want the option to apply for judgement in default, opt for a Part 7 claim.

There’s also no option for a counterclaim to be made or for part 20 defendants to be added. Therefore, consider whether the other side may seek to bring a counterclaim or add in a part 20 defendant. If they are, its likely the Court will determine that the claim should proceed as a Part 7 claim, which ultimately incurs further time and costs that could potentially have been avoided if the claim had begun as a Part 7 claim.

Remember to get the correct form, Part 8 claims have their own forms and procedures that differ from Part 7 claims however, the same rules for service apply for both Part 7 and 8 claims.

Remember to include your evidence when filing the Part 8 claim form as it is unlikely that the court will grant permission for evidence to be filed at a later stage in the claim.

 Have you been served? It’s okay, don’t panic!

If you are defending a Part 8 claim, act fast! You must acknowledge service of the claim within 14 days of being served and with that you must also file your response to the claim. The parties may agree an extension of no more than 14 days however proof of the written agreement between the parties should also be filed with the court.

If you fail to acknowledge service, you are still permitted to attend the final hearing, but you will not be able to take part without the court’s permission, and no evidence will be filed in support of your position.

If you are looking to object to the Part 8 procedure, you must file your objection when the acknowledgement of service is served. The court will then set a hearing date for the objection to be heard and will decide whether the claim may proceed as a Part 8 claim, or if it should be transferred to proceed as a Part 7 claim.

 What about recovery costs?

Part 8 claims are treated as allocated to the multitrack and therefore you may be able to recover a proportion of your costs, if successful at trial. Part 7 claims are subject to a stringent fixed recoverable costs regime, dependent on the track your claim is allocated to.

Consider the impact on your ability to recover costs depending on whether you choose the Part 7 procedure or Part 8, and the risk of adverse costs being awarded against you if you were to be unsuccessful.

Always have costs in mind and that litigation comes with risk! However, at Sewell Law we pride ourselves on providing certainty to our clients in relation to litigation costs and associated risks, ensuring that our clients can make fully informed decisions… like whether to pursue a Part 7 or Part 8 claim!

 Berkeley Homes Ltd v John Sisk Co Ltd [2023] EWHC 2152

Need a bit of context? We’ve summarised this case for you.

A dispute between an employer and a contractor as to which party was liable for alleged omissions and errors in design. The Claimant’s position in the matter was that the Part 8 procedure was appropriate pursuant to the belief that the dispute could be resolved as a matter of pure contractual construction. However, the defendant disputed this on the basis that the determining the omissions and errors in construction required substantial analysis over the disputed facts.  

The court determined in this case that the claim was not suitable for the Part 8 procedure and therefore made no declarations. The Court instead invited the parties to consider whether the claim should proceed under the usual Part 7 procedure.