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PHOENIX FINANCE LTD v FEDERATION INTERNATIONAL DE L’AUTOMOBILE AND OTHERS

28 June 2002

Indemnity costs: claimant failing to send letter before action: costs to be assessed on an indemnity basis THE CLAIMANT’S application for interlocutory relief was dismissed and the second and third defendants applied for their costs to be assessed on an indemnity basis on the ground that the claimant failed to send a letter before action or other comparable warning before the proceedings were instituted. SIR ANDREW MORRITT V-C said that the position even before the Civil Procedure Rules was that letters before action were required in all but exceptional cases. Under the CPR in most cases there were pre-action protocols in which it was made clear that in the absence of very good reasons a letter before action or other warning was expected. It was true that in the circumstances there was no pre-action protocol directly applicable but the whole thrust of the CPR, and in particular the overriding objective, made it plain that a letter before action was at least ...

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