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Civil Litigation

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Civil Litigation
Civil Litigation Past Paper June 2010
Question 1 - John Atree director of Great Furniture Direct Ltd (GFD)
(a) Mr Atree advises you that GFD has been experiencing a sharp increase in the number of invoices that are not paid on time or at all. He would like your advice about how GFD can recover some of these debts using the staff in their Accounts Department. In particular he would like to know:
(i) How does the size of the debt influence the court procedure after issue?

(ii) What must be done before proceedings are issued?

(iii) The content, paperwork and ancillary matters that would be needed to issue proceedings.

(iv) If you are instructed how will costs be kept to a minimum.

(8 marks)
(i) The size of the debt affects the track the case will be entered to, with the options being the small, fast or multi track. Since the debt in question is £4,500 then the claim will be entered into the small claims track.
(ii) Before the proceedings are issued it is seen as good practice to message the defendant in question before taking any legal action. This will allow for the defendant to be aware of the current situation and potentially allow for a settlement before any legal action commences. The letter should allow for 14 days for a reply before any legal action is taken.
(iii) To begin legal proceedings a claim form will be needed and will be prepared by the claimant. This will compose of a detail account of the reasons for the claim and a statement of truth signed by either the claimant or the claimants legal representation. Three copies will be needed to be sent to the court. There will be a fee that will also need to be paid when the claim form is submitted. Once the claim form and fee have been sent to court, the court will issue the claim
(iv) ‘Fixed fee’ payment arrangements for solicitors fees are a popular way to pay solicitors fees because they help provide peace of mind. Fixed fee agreements reduce the risk of relationship fallout

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