FLK1 · Dispute Resolution
Trial, judgment & interest
SQE1 revision notes — the key rules, leading cases and common traps for this topic, in plain English and current to 2026.
DR.10 — Trial, Judgment & Interest
Trial preparation & bundle
The claimant (or party directed) files a trial bundle generally not more than 7 days and not less than 3 days before trial (CPR 39.5). A party must give notice if it intends to rely on a witness statement — a witness who does not attend cannot have their statement used as evidence unless the court permits or it is agreed.
Conduct of trial; non-attendance
- Trials are normally in public (CPR 39.2).
- If no party attends, the court may strike out the claim and any counterclaim. If the claimant does not attend, it may strike out the claim; if the defendant does not attend, it may strike out the defence and decide on the claimant's evidence (CPR 39.3).
- A party who failed to attend may apply to set aside the judgment, but only if it: (a) acted promptly, (b) had good reason for non-attendance, and (c) has a reasonable prospect of success at trial — all three are required.
Judgment & interest
- Contract debts: interest is usually claimed under s.35A Senior Courts Act 1981 (High Court) / s.69 County Courts Act 1984 (County Court) — court has discretion on rate, period and whether to award. Commercial debts may instead carry interest under the Late Payment of Commercial Debts (Interest) Act 1998 (statutory rate = 8% above base; claim as of right, not discretionary).
- Judgment debts carry interest at 8% under the Judgments Act 1838 (County Court money judgments ≥ £5,000 also attract Judgments Act interest).
- PI claims: special damages attract interest (often half average special account rate); general damages for PSLA attract interest at 2% from service of proceedings.
Costs
- General rule: loser pays (CPR 44.2), but costs are always discretionary.
- Fixed recoverable costs now apply across the fast track and most intermediate-track claims.
- Track recap (CPR Part 26, renumbered, in force 6 April 2024): small claims ≤ £10,000; fast track £10,000–£25,000; intermediate track £25,000–£100,000 (introduced Oct 2023); multi-track above. Non-RTA PI small-claims PSLA sub-limit is £1,500.
Common traps
- All three CPR 39.3 limbs needed to set aside — promptness alone is not enough.
- Distinguish discretionary s.35A/s.69 interest from as-of-right Late Payment Act interest.
- Judgments Act rate (8%) is fixed; pre-judgment statutory interest rate is discretionary.
- Indemnity-basis costs (e.g. after beating a Part 36 offer) resolve doubt in the receiving party's favour and ignore proportionality.
More Dispute Resolution topics
- Analysis of claim — causes of action, forum, merits
- Pre-action conduct & protocols
- Limitation periods
- Parties, issue & service, statements of case
- Tracks & case management
- Interim applications (summary judgment, interim payments, injunctions, security for costs)
See all topics in the FLK1 guide or the full SQE1 syllabus.
Independent SQE1 revision notes for study — not legal advice; check primary sources before relying on any point. Exam rules are set by the SRA; see the official SQE site.