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When you run a business, you can get into disagreements with others, potentially leading to commercial court disputes. You may, however, be able to resolve these with an early settlement without court action, such as through an alternative dispute resolution method. However, you may find that commercial litigation is necessary for the other party to take the case to court. The litigation process can be timely and have substantial legal costs, so it is essential to ensure that you take the right action early if you make a commercial claim. Unfortunately, however, some people do not take civil litigation seriously and instead abuse the legal action process with civil disputes. If this occurs to you as a defendant, you may consider a Civil Proceedings Order (CPO). This article will explain what a CPO is for a commercial dispute.
What is a Civil Proceedings Order?
The details of Civil Proceedings Orders (CPO) are in the Senior Courts Act 1981. They are a method to stop a potential court litigant from indefinitely starting court proceedings, namely what appears to be a vexatious litigant. A vexatious litigant is a person who keeps making court claims that have no merit. For example, they effectively abuse the court process.
How Can I Get a Civil Proceedings Order?
If you want to get a Civil Proceedings Order (CPO) against a vexatious litigant, it is advisable to take legal advice. A lawyer can suggest whether this is appropriate and help you with it. As a business owner, you cannot, however, directly get a CPO. Instead, you can ask the Attorney General to consider one for the potential vexatious litigant.
It is advisable only to request consideration from the Attorney General where the vexatious litigant has started a minimum of six claims, which are either:
- unsuccessful; or
- have been struck out.
Where the above occurs, the Attorney General may consider the vexatious litigant, and they will examine each case individually. The Attorney General will then decide if the person is guilty of vexatious litigation. Where they believe they have been, they will instruct you to approach the Government Legal Department to investigate the situation. This means you will need to provide them with the details of the potential vexatious litigation, which includes:
- the parties’ names;
- outcomes of the potential vexatious litigants;
- court references; and
- any other supporting documents.
All of the above should be on a spreadsheet.
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When Might I Get a Civil Proceedings Order?
There is no formal definition of a vexatious litigant. However, a formal criteria exists for when a court may issue a Civil Proceedings Order (CPO). If the potential vexatious litigant meets this criterion, you can get a CPO. The criteria is that the litigant “habitually, persistently and without reasonable grounds engaged in vexatious proceedings”.
This guide outlines how to resolve commercial disputes.
As the requirements are very stringent, the Attorney General’s office’s guidance suggests that you consider an alternative remedy first, such as a Civil Restraint Order (CRO). A CPO may then be appropriate if the latter does not work, but the latter is not necessary before requesting a CPO.
Some of the criteria a court will consider before issuing a CPO include:
- what the judge concluded on the proceedings in question;
- considering the overall picture of the litigant’s behaviour to see if it is ‘habitual and persistent’;
- the balance of justice in terms of the right to be able to access the court and the importance of protecting the public from abusive court claims; and
- whether they issue a CPO, they include stopping the vexatious litigants from acting as a McKenzie Friend in another person’s court or proceedings.
Key Takeaways
A person who keeps making court claims without merit may be a vexatious litigant. You may be affected by potential vexatious litigation when a commercial dispute arises. If you think a person may be a vexatious litigant, you may potentially be able to get a Civil Proceedings Order (CPO) for them. This means they cannot start any litigation claims or actions in court. You will usually do this after using a Civil Restraint order (CRO), although there are no criteria for using the latter first. You will apply to the Attorney General to consider a CPO. It is advisable only to do so once there have been at least six potentially vexatious litigation claims by the person.
If they think a CPO may be relevant, they will ask you to approach the Government Legal Department with specific information for them to investigate. There is a stringent criteria in place for the issuance of a CPO. The criteria is that the court needs to satisfy itself that “habitually, persistently and without reasonable grounds engaged in vexatious proceedings”.
If you need help understanding what a Civil Proceedings Order (CPO) is for a commercial dispute in the UK, LegalVision’s experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
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