{"id":186011,"date":"2024-01-25T08:49:31","date_gmt":"2024-01-25T08:49:31","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=186011"},"modified":"2024-05-22T00:27:39","modified_gmt":"2024-05-21T23:27:39","slug":"avoid-being-labelled-vexatious-litigant","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/avoid-being-labelled-vexatious-litigant\/","title":{"rendered":"How to Avoid Being Labelled as a Vexatious Litigant"},"content":{"rendered":"\n

You may find yourself in a commercial dispute when you run a business. Commercial disputes occur when you and another business or customer disagree on an issue. Unfortunately, commercial disputes can end up in a commercial court for legal action. As a business owner, you may want to avoid this, as commercial cases can be timely and expensive. You should avoid actions that make you a vexatious litigant in commercial proceedings, as this could result in court orders and mean you need the court’s permission for commercial action in civil cases. This article will, therefore, explain what a vexatious litigant is and how to avoid being one.<\/p>\n\n\n\n

What is a Vexatious Litigant?<\/h2>\n\n\n\n

A vexatious litigant is a person or business owner who deliberately tries to take court action<\/a> against others. When they do so, there is no merit in their reasons. If so, they will be unable to start a civil case, such as a commercial case, unless a court permits them. This means they cannot start proceedings through one of three sorts of restraint orders.  <\/p>\n\n\n\n

The court will place their names on a list of vexatious litigants. This will help you determine whether a commercial party to your dispute is a vexatious litigant. <\/p>\n\n\n\n

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Once a court identifies a business owner as a vexatious litigant, they are not allowed to ask a court for assistance in legal fees. As they need to get permission from the court to start a commercial case, they have to apply to the high court for this. They will need to pay the fee for this, but a court will refund it if it permits them to go ahead.<\/p>\n<\/div>\n\n\n\n

Before a vexatious litigant begins court proceedings<\/a> for a commercial dispute, they must obtain an order to proceed.<\/p>\n\n\n\n

How Do I Avoid Being a Vexatious Litigant?<\/h2>\n\n\n\n

A court can make civil restraint orders<\/a> against companies, so your business needs to avoid being a vexatious litigant. If your company is a vexatious litigant, you, as the director or shareholder of your company, cannot make a claim instead.  <\/p>\n\n\n

\n \"Front\n
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Guide to Resolving UK Business Disputes<\/div>\n
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This guide outlines how to resolve commercial disputes.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

You can avoid being a vexatious litigant as a business or business owner by being clear about what is meant by \u2018totally without merit\u2019. UK courts have clarified that this includes situations where the commercial case is \u2018bound to fail\u2019. This means there is no rational reason why a commercial case may be a success. In this case, a court may decide whether to issue a civil restraint order. However, they can still make a civil restraint order where a court has not used the words \u2018totally without merit\u2019.<\/p>\n\n\n\n

You can also avoid being a vexatious litigant<\/a> by ensuring you do not reach the threshold set by courts before they can make a civil restraint order against you or your business.\u00a0 The rules about this are in the Civil Procedure Rules 2.3, which details the following:<\/p>\n\n\n\n