Vexatious litigation

The court has various powers to prevent parties from bringing or pursuing claims which are vexatious.

Civil restraint orders (CROs)

CROs can be made where a party persists in issuing claims or making applications that are totally without merit (CPR PD 3C, para 1). The CRO restrains the party from making claims or applications either in certain proceedings or in certain courts (depending on the type of CRO) and can apply to specific proceedings or for a specific period (which cannot exceed three years for most types of CRO), which can later be extended by the court (CPR PD 3C, para 3.9CPR PD 3C, para 3.10 and CPR PD 3C, para 4.9CPR PD 3C, para 4.10). During this time, the party who is subject to the CRO will only be able to make applications or claims (as specified in the order) with prior

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Third party costs—Court of Appeal confirms stay pending detailed assessment is case management decision (Federal Republic of Nigeria v VR Global Partners LP)

Dispute Resolution analysis: The Court of Appeal has upheld the decision of a judge at first instance to stay an application for a third-party costs order under section 51 of the Senior Courts Act 1981 until after the conclusion of the detailed assessment of the underlying bill of costs. Dismissing Nigeria’s appeal, the Court of Appeal held that there is no presumption that a third-party costs application should be determined before a detailed assessment. The question is purely one of case management, to be decided in accordance with the interests of justice and the overriding objective. The decision, being within the scope of discretion allowed a judge, was not amenable to appeal; that a different judge would have reached a different conclusion was not in point. Where there is a real question whether any further sum will be payable following assessment (particularly where a substantial payment on account has already been made and costs are to be assessed on the standard basis), it is legitimate to stay the third party application to avoid wasting court resources on what may prove to be a pointless satellite exercise. Of general and at least equal significance to costs practitioners were the Court of Appeal’s strong comments (obiter dicta in strict terms) deprecating disproportionate detailed assessment processes and endorsing the use of sampling as a case management tool in cases involving very significant bills of legal costs. Written by Lauren Godfrey, barrister at Gatehouse Chambers.

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