In <span class="news-text_italic-underline">Bangs v FM Conway Ltd [2024] EWCA Civ 1461</span>, the Court of Appeal addressed whether the merits of a claim should influence the grant of relief from sanctions. The case concerned a claimant’s failure to file and serve particulars of claim within the prescribed time, leading to the claim’s strike-out. The first instance judge granted relief primarily due to the strength of the claimant’s case because of a previously withdrawn admission of liability by the defendant. The Court of Appeal overturned this decision, ruling that the merits of the case were irrelevant in this context, absent proper notice or a claim for summary judgment.
The case arose from alleged damage to the claimant’s property caused by the defendant’s building works. The defendant’s insurer admitted liability in pre-action correspondence but later withdrew the admission, as permitted under the Civil Procedure Rules at the time.
The claimant issued a claim form in May 2023, with particulars of claim due by 6 July 2023. No particulars were filed and the claimant’s solicitor provided no explanation. The defendant successfully applied to strike out the claim. The claimant sought to set aside the strike out and extend the time for filing particulars to September 2023.
Both parties agreed that the application fell under the third limb of the <span class="news-text_italic-underline">Denton</span> criteria, requiring the court to consider all circumstances as the strike out constituted a further procedural step taken due to non-compliance. The first instance judge found the claimant’s breach serious and unjustified but granted relief due to the strength of the claimant’s case, citing the withdrawn admission of liability and the fact the claim was not yet time-barred.
The Court of Appeal allowed the defendant’s appeal, holding that the first instance judge erred by considering the merits of the claim without proper notice or justification. The court reaffirmed that the merits of a claim should not ordinarily influence relief from sanctions decisions. Exceptions are limited to cases where a party seeks summary judgment based on a case so strong that it is apparent without much investigation. In such exceptional cases, the party relying on the merits must provide clear notice to the opposing party. This ensures procedural fairness as the other side can prepare and present relevant evidence. In this case, no notice was given. The merits of the claim were central to the first instance judge’s decision to grant relief. By improperly considering them, the judge had unwittingly caused injustice, warranting reversal.
