Litigation Letter
The CPR are More Flexible
AXA Insurance Co Ltd v Swire Fraser Ltd (CA TLR 19 January)
The fundamentally different procedure laid down in the new rules, outlined by the Court of Appeal in
Biguzzi v Rank Leisure plc ([1999 1 WLR 1926 and 18/LL p98) required that notwithstanding substantial delay by a claimant in progressing his claim,
striking out should only be ordered if it was just or proportionate to do so, it being for the court to show disapproval when
making orders as to costs. Rule 3.4(2)(c) conferred a wide discretion on the court and did not require proof of prejudice.
There could not be read into
Biguzzi any remit to consider a claimant’s delay or failure to comply with the rules any more leniently than in the old days. The
new rules simply enabled the courts to adopt a more flexible approach. To show the court’s disapproval of the delay and to
protect the defendant as far as possible from the consequences of the fact that the case could not now be heard with two other
claims making similar allegations against them, the claimants should pay the costs of the strike-out proceedings and some
of the allegations in its points of claim were struck out so as to confine the scope of the further trial. There were a number
of allegations which went wider than those made in the other two actions.