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.

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A supplier delivered industrial machinery to a manufacturer under a commercial sale contract. The machinery was defective and caused a fire that injured a factory worker employed by the manufacturer. The worker suffered burns and knew at once that the defective machine had caused his injuries. He wishes to bring a personal injury claim. Separately, the manufacturer wishes to sue the supplier under their contract for the financial loss it suffered when the fire damaged its factory premises. The breach and the fire both occurred on 3 March 2024. Which statement best describes the relevant primary limitation periods?

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