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FLK1 · Multiple-choice practice

FLK1 Dispute Resolution — Question 43

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Question

ABC Ltd is involved in a commercial dispute with XYZ Ltd over a breach of contract. ABC Ltd has filed a claim using the Part 7 procedure under the Civil Procedure Rules. After filing the claim, both parties are required to complete and exchange allocation questionnaires. The case has been allocated to the multi-track, and the court has issued directions for managing the case towards trial. However, XYZ Ltd fails to comply with one of the court’s directions, which requires them to disclose certain documents by a specified deadline. ABC Ltd wants to ensure that the case proceeds without further delays and seeks guidance on how to address XYZ Ltd’s non-compliance. What procedural step can ABC Ltd take under the Civil Procedure Rules to address XYZ Ltd’s failure to comply with the court’s directions?

  1. Apply for summary judgment against XYZ Ltd
  2. Apply for a stay of proceedings until XYZ Ltd complies with the directions
  3. Apply for an order for specific performance of the contract
  4. Apply for an unless order, requiring XYZ Ltd to comply with the directions or face sanctions
  5. Apply for mediation to resolve the dispute

Answer and explanation

Correct answer: D. Apply for an unless order, requiring XYZ Ltd to comply with the directions or face sanctions

Apply for an unless order, requiring XYZ Ltd to comply with the directions or face sanctions. Feedback: Under the Civil Procedure Rules, when a party fails to comply with court directions, the other party can apply for an “unless order.” An unless order stipulates that unless the non-compliant party fulfils the specified direction by a certain date, they will face specified sanctions, such as their defence being struck out or judgment being entered against them. This procedural step ensures that the case progresses and encourages compliance with court orders. Applying for summary judgment (1) or specific performance (3) are not appropriate remedies for non-compliance with procedural directions. A stay of proceedings (2) would halt the progress of the case, which is not desirable in this context. Mediation (5) is an alternative dispute resolution method and not a procedural step to enforce compliance with court directions. Therefore, the correct course of action for ABC Ltd is to apply for an unless order.

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