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Indemnity Costs Ordered Against Claimant for Failing to Write Letter Before Action

Phoenix Finance Limited -v- Federation International L'automobile and Others (CH D TLR 27th June)

In ordering the Claimant to pay the Defendant's costs on the Indemnity basis, the Vice Chancellor, Sir Andrew Morritt said that although the Pre-Action Protocol applied to these proceedings, even before the CPR then letters before action are required in all but exceptional cases. The whole thrust of the CPR and, in particular, the overriding objective, made it plain that a letter before action was at least as necessary under the New Rules as under the old. If they are not written and in the event of the claimant losing they may well pay indemnity costs.

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