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England and Wales High Court (Commercial Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Commercial Court) Decisions >> Oran Environmental Solutions Ltd & Anor v QBE Insurance (Europe) Ltd & Anor [2020] EWHC 1271 (Comm) (11 May 2020) URL: http://www.bailii.org/ew/cases/EWHC/Comm/2020/1271.html Cite as: [2020] BLR 544, [2020] WLR 3527, [2020] 1 WLR 3527, [2020] WLR(D) 293, [2020] EWHC 1271 (Comm) |
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OF ENGLAND AND WALES
COMMERCIAL COURT
QUEEN'S BENCH DIVISION
Rolls Building Fetter Lane, London, EC4A 1NL |
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B e f o r e :
____________________
(1) Oran Environmental Solutions Limited (2) Kilbagie Investments Limited |
Claimants |
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- and |
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(1) QBE Insurance (Europe) Limited (2) Kerry London Limited |
Defendants |
____________________
Ms Alison Padfield Q.C. (instructed by Beale and Company Solicitors LLP) for the Second Defendant
Hearing date: 11 May 2020
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Crown Copyright ©
Mrs Justice Cockerill :
Introduction
i) The Second Defendant's application that the court does not have jurisdiction to hear the claim because the claim form issued on 21 December 2018 was not validly served on it before its expiry which was at the latest at 4pm on 6 January 2020.
ii) The First Claimant's contingent application, which arises only if the first application succeeds, that time for serving the claim form be extended under CPR 7.6(1) and (3) because it has taken all reasonable steps to comply with CPR 7.5.
The First Application: Service of the Claim Form
Introduction
"(1) Where the claim form is served within the jurisdiction, the claimant must complete the step required by the following table in relation to the particular method of service chosen, before 12.00 midnight on the calendar day four months after the date of issue of the claim form.
Method of service | Step required |
First class post, document exchange or other service which provides for delivery on the next business day | Posting, leaving with, delivering to or collection by the relevant service provider |
Delivery of the document to or leaving it at the relevant place | Delivering to or leaving the document at the relevant place |
Personal service under rule 6.5 | Completing the relevant step required by rule 6.5(3) |
Fax | Completing the transmission of the fax |
Other electronic method | Sending the e-mail or other electronic transmission" |
"(1) Particulars of claim must
(a) be contained in or served with the claim form; or
(b) subject to paragraph (2) be served on the defendant by the claimant within 14 days after service of the claim form".
i) First, she sent the claim form and particulars of claim by special delivery to Beale & Co, the solicitors who had been corresponding with the Claimants' solicitors for the best part of a year.
ii) Second, she replicated this exercise by fax and by email.
iii) Third, she sent the same documents to the Second Defendant direct - by special delivery and also by email to the Second Defendant's "info" email address on its website.
Discussion
Service on Beale & Co and by email
"'(1) A claim form may (subject to Section IV of this Part and the rules in this Section relating to service out of the jurisdiction on solicitors, European Lawyers and parties) be served by any of the following methods "
(a) personal service in accordance with rule 6.5;
(b) first class post, document exchange or other service which provides for delivery on the next business day, in accordance with Practice Direction 6A;
(c) leaving it at a place specified in rule 6.7, 6.8, 6.9 or 6.10;
(d) fax or other means of electronic communication in accordance with Practice Direction 6A; or
(e) any method authorised by the court under rule 6.15.
(2) A company may be served
(a) by any method permitted under this Part; or
(b) by any of the methods of service permitted under the Companies Act 2006.'
"Service on a solicitor or European Lawyer within the United Kingdom or in any other EEA state
6.7
(1) Solicitor within the jurisdiction: Subject to rule 6.5(1), where
(a) the defendant has given in writing the business address within the jurisdiction of a solicitor as an address at which the defendant may be served with the claim form; or
(b) a solicitor acting for the defendant has notified the claimant in writing that the solicitor is instructed by the defendant to accept service of the claim form on behalf of the defendant at a business address within the jurisdiction,
the claim form must be served at the business address of that solicitor.
Service of the claim form where before service the defendant gives an address at which the defendant may be served
6.8
Subject to rules 6.5(1) and 6.7 and the provisions of Section IV of this Part, and except where any other rule or practice direction makes different provision
(a) the defendant may be served with the claim form at an address at which the defendant resides or carries on business within the UK or any other EEA state and which the defendant has given for the purpose of being served with the proceedings;
Service of the claim form where the defendant does not give an address at which the defendant may be served
6.9
(1) This rule applies where
(a) rule 6.5(1) (personal service);
(b) rule 6.7 (service of claim form on solicitor or European Lawyer); and
(c) rule 6.8 (defendant gives address at which the defendant may be served),
do not apply and the claimant does not wish to effect personal service under rule 6.5(2).
(2) Subject to paragraphs (3) to (6), the claim form must be served on the defendant at the place shown in the following table.
Nature of defendant to be served | Place of service |
6. Company registered in England and Wales | Principal office of the company; or any place of business of the company within the jurisdiction which has a real connection with the claim". |
" |
"Service by fax or other electronic means
4.1 Subject to the provisions of rule 6.23(5) and (6), where a document is to be served by fax or other electronic means (1) the party who is to be served or the solicitor acting for that party must previously have indicated in writing to the party serving
(a) that the party to be served or the solicitor is willing to accept service by fax or other electronic means; and
(b) the fax number, e-mail address or other electronic identification to which it must be sent; and
(2) the following are to be taken as sufficient written indications for the purposes of paragraph 4.1(1)
(a) a fax number set out on the writing paper of the solicitor acting for the party to be served;
(b) an e-mail address set out on the writing paper of the solicitor acting for the party to be served but only where it is stated that the e-mail address may be used for service; or
(c) a fax number, e-mail address or electronic identification set out on a statement of case or a response to a claim filed with the court."
"(a) the defendant has given in writing the business address within the jurisdiction of a solicitor as an address at which the defendant may be served with the claim form; or
(b) a solicitor acting for the defendant has notified the claimant in writing that the solicitor is instructed by the defendant to accept service of the claim form on behalf of the defendant at a business address within the jurisdiction .."
"Because the claimants had not been told by [the solicitors] that they were acting on behalf of the defendant and were authorised to accept service, there was no solicitor "acting" for the defendant within the meaning of CPR r 6.5(6) : there was no solicitor acting so that he or she could be served."
"... where a document is to be served by fax or other electronic means
(1) the party who is to be served or the solicitor acting for that party must previously have indicated in writing to the party serving
(a) that the party to be served or the solicitor is willing to accept service by fax or other electronic means; and
(b) the fax number, e-mail address or other electronic identification to which it must be sent".
Service on the Second Defendant by post
"the correct approach when determining whether, for the purpose of answering the question "was the claim form served during its period of validity?" is to ascertain whether the Claimant has carried out the step required by rule 7.5 within the time provided for doing so. That would apply equally to cases where time for service has been extended by order (as here) and to cases where the basic 4 or 6 month period of validity applies."
"the point was made, , that the order of Master Fontaine did not say that the time under rule 7.5 was extended, rather it extended the time for 'service' of the claim form. In that sense taken literally the order might better have been expressed by reference to rule 7.5 but noting as I do that (a) the application before her was clearly under rule 7.5 and (b) that she was not making a decision based on any argument over whether the wording she adopted would be other than an order in line with the basis of the application, my judgment is that the proper interpretation of her order is that it was or was intended to be an extension of time for taking the necessary steps under rule 7.5."
Conclusion as to the service of the claim
The Second Application: CPR 7.6
"where there is no reason for the failure to serve the claim form within time other than incompetence, neglect or oversight on the part of the Claimant or his legal representative, this, though not an absolute bar, will be a strong or powerful reason for refusing to grant an extension of time... the fact that a claimant is awaiting some other development in the case, may well not amount to a good reason justifying an extension of time for service of the claim form".
i) The claim form was issued on 21 December 2018. The claim arises out of a fire in December 2012 and the claim form was issued to protect the Claimants' position on limitation.
ii) It was not until one month before the expiry of the validity of the Claim Form on 21 March 2019 that Markel Law, who were then acting for the Claimants, sent a pre-action protocol letter of claim to the Second Defendant.
iii) Following the agreement of the three-month extension nothing substantive was done until again close to the deadline. This pattern was then repeated again in September 2019 and December 2019.
iv) In December 2019 the Second Defendant refused to agree a two-month extension, and the Claimants' then representatives were therefore well on notice that unless agreement was reached service would be necessary by the first Monday in January.
v) The First Claimant still failed to attempt to serve the claim form until the last possible moment: shortly before the deadline expired at 4pm on 6 January 2020.
vi) Further in all this time no attempt was made to ascertain if Beale & Co had instructions to accept service, or to provide for service by email.
i) The issue was clear from when the Second Defendant filed an acknowledgement of service on 17 January 2020 which stated that it intended to contest jurisdiction. The application was issued on 10 February 2020 and served on BPS Law on the same day.
ii) It was not until 30 April 2020, that the First Claimant filed its application under CPR 7.6.