Rules of the Supreme Court (Amendment) 1994
| Jurisdiction | UK Non-devolved |
| Citation | SI 1994/1975 |
| Year | 1994 |
1994 No. 1975 (L.10)
SUPREME COURT OF ENGLAND AND WALES
The Rules of the Supreme Court (Amendment) 1994
Made 18th July 1994
Laid before Parliament 28th July 1994
Coming into force 1st September 1994
We, the Supreme Court Rule Committee, having power under section 85 of the Supreme Court Act 19811to make rules of court under sections 512and 84 of that Act for the purpose of regulating and prescribing the practice and procedure to be followed in the Supreme Court, hereby exercise those powers as follows—
Citation, commencement and interpretation
1. These Rules may be cited as the Rules of the Supreme Court (Amendment) 1994 and shall come into force on 1st September 1994.
2. In these Rules, an Order referred to by number means the Order so numbered in the Rules of the Supreme Court 19653and Appendix A means Appendix A to those Rules.
Duration of writ
3. In Order 6, rule 8(1)(b), after the words “Order 11” there shall be inserted the words “or Order 75, rule 4”.
Derivative actions
4. After Order 15, rule 12 there shall be inserted the following new rule–
“Derivative actions
12A.—(1) This rule applies to every action begun by writ by one or more shareholders of a company where the cause of action is vested in the company and relief is accordingly sought on its behalf (referred to in this rule as a “derivative action”).
(2) Where a defendant in a derivative action has given notice of intention to defend, the plaintiff must apply to the Court for leave to continue the action.
(3) The application must be supported by an affidavit verifying the facts on which the claim and the entitlement to sue on behalf of the company are based.
(4) Unless the Court otherwise orders, the application must be issued within 21 days after the relevant date, and must be served, together with the affidavit in support and any exhibits to the affidavit, not less than 10 clear days before the return day on all defendants who have given notice of intention to defend; any defendant so served may show cause against the application by affidavit or otherwise.
(5) In paragraph (4), “the relevant date” means the later of–
(a)
(a) the date of service of the statement of claim;
(b)
(b) the date when notice of intention to defend was given (provided that, where more than one notice of intention to defend is given, that date shall be the date when the first notice was given).
(6) Nothing in this rule shall prevent the plaintiff from applying for interlocutory relief pending the determination of an application for leave to continue the action.
(7) In a derivative action, Order 18, rule 2(1) (time for service of defence) shall not have effect unless the Court grants leave to continue the action and, in that case, shall have effect as if it required the defendant to serve a defence within 14 days after the order giving leave to continue, or within such other period as the Court may specify.
(8) On the hearing of the application under paragraph (2), the Court may–
(a)
(a) grant leave to continue the action, for such period and upon such terms as the Court may think fit;
(b)
(b) subject to paragraph (11), dismiss the action;
(c)
(c) adjourn the application and give such directions as to joinder of parties, the filing of further evidence, discovery, cross–examination of deponents and otherwise as it may consider expedient.
(9) If the plaintiff does not apply for leave to continue the action as required by paragraph (2) within the time laid down in paragraph (4), any defendant who has given notice of intention to defend may apply for an order to dismiss the action or any claim made in it by way of derivative action.
(10) On the hearing of such an application for dismissal, the Court may–
(a)
(a) subject to paragraph (11), dismiss the action;
(b)
(b) if the plaintiff so requests, grant the plaintiff (on such terms as to costs or otherwise as the Court may think fit) an extension of time to apply for leave to continue the action; or
(c)
(c) make such other order as may in the circumstances be appropriate.
(11) Where only part of the relief claimed in the action is sought on behalf of the company, the Court may dismiss the claim for that part of the relief under paragraphs (8) and (10), without prejudice to the plaintiff’s right to continue the action as to the remainder of the relief, and Order 18, rule 2(1) shall apply as modified by paragraph (7).
(12) If there is a material change in circumstances after the Court has given leave to the plaintiff to continue the action in pursuance of an application under paragraph (2), any defendant who has given notice of intention to defend may make an application supported by affidavit requiring the plaintiff to show cause why the Court should not dismiss the action or any claim made in it by way of derivative action. On such application the Court shall have the same powers as it would have had upon an application under paragraph (2).
(13) The plaintiff may include in an application under paragraph (2) an application for an indemnity out of the assets of the company in respect of costs incurred or to be incurred in the action and the Court may grant such indemnity upon such terms as may in the circumstances be appropriate.
(14) So far as possible, any application under paragraph (13) and any application by the plaintiff under Order 14 shall be made so as to be heard at the same time as the application under paragraph (2).”.
5. At the end of Order 18, rule 2, there shall be inserted the following new paragraph–
“4 Paragraph (1) is subject to the provisions of Order 15, rule 12A(7) (derivative actions).”.
Payment into Court to await the outcome of an action
6. In Order 22, at the end of rule 8, there shall be inserted the following new paragraph–
“4 If the Court so orders, paragraph (3) shall apply, with the necessary modifications, where a party has paid money to another person to abide the outcome of the action.”.
Service of summons
7. For Order 32, rule 3, there shall be substituted the following–
“3.—(1) A summons asking only for the extension or abridgment of any period of time may be served on the day before the day specified in the summons for the hearing of the application.
(2) Except as provided by paragraph (1), and unless the court otherwise orders or any of these rules otherwise provides–
(a)
(a) a summons must be served on every other party not less than two days before the day specified in the summons for the hearing of the application;
(b)
(b) it must be so served within 14 days of its issue; and
(c)
(c) any evidence relied on in support of the application must be served with the summons.”.
Prescribed hourly rate
8. For Order 62, rule 17(4), there shall be substituted the following–
“4 This rule and the provisions contained in Appendix 2 to this Order shall not apply to the extent that regulations made under the Legal Aid Act 19884determine the amount of costs payable to legal representatives in relation to proceedings to which this Order applies.”.
Notice of change of solicitor
9. Order 67, rule 1 shall be amended as follows–
(1) in paragraph (3), for the words, “The party giving the notice” there shall be substituted “The new solicitor”; and
(2) in paragraph (4), for the words “The party giving the notice” there shall be substituted “The party on whose behalf notice has been given”.
Service out of the jurisdiction in arbitration proceedings
10. In Order 73, rule 7(3), for the words “5, 6 and 8” there shall be substituted “5 to 8”.
Attachment of debts due from Crown
11. Order 32 shall be amended as follows–
(1) in rule 11(1)(d), for the words “and Order 51, rule 2” there shall be substituted “, Order 51, rule 2 and Order 77, rule 16”; and
(2) in rule 14(1)(d), for the words “and Order 51, rule 2” there shall be substituted “, Order 51, rule 2 and Order 77, rule 16”.
12. In Order 77, rule 16, after paragraph (2B) there shall be inserted the following new paragraph–
“2C A master, the Admiralty Registrar and a district judge of the Family Division shall have power to hear an application under paragraph (2).”.
Defamation
13. Order 82 shall be amended as follows–
(1) in rule 3–
(a)
(a) after paragraph (2) there shall be inserted the following new paragraphs–
“2A Without prejudice to Order 18, rule 8, but subject to paragraph (2B), where the defendant makes an allegation as described in paragraph (2), the plaintiff shall serve a reply specifically admitting or denying any such allegation raised by the defendant and specifying any fact or matter upon which he relies in opposition to the defendant’s allegations.
2B No reply shall be required under paragraph (2A) where all the facts or matters on which the plaintiff intends to rely in opposition to the defendant’s allegations as described in paragraph (2) are already particularised elsewhere in the pleadings.”;
(b)
(b) after paragraph (3) there shall be inserted the following new paragraph–
“3A Without prejudice to Order 18...
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