“The application has a long history and this is the third occasion the parties have appeared before me. The first occasion was on 5 March when I heard the submissions of Counsel for the Defendant setting out matters in detail. I adjourned the application for the Plaintiff to obtain legal advice and for the matter to come back to me on 7 May. On that day, the Plaintiff was represented by counsel. A Legal Aid Certificate had been just issued and as a further indulgence I adjourned the application until today. Since then, the court has received from the Plaintiff’s solicitor a copy of the Legal Aid Certificate showing that it was discharged by consent. The Defendants say a finding once made in the High Court on a document which the Plaintiff says was binding was not such a contract means that the losses now claimed cannot be attributed to the Defendants. I am bound by findings of fact the High Court made and I cannot resist those facts and make my own interpretation. The Plaintiff cannot sustain otherwise. The Plaintiff makes other complaints of a much wider nature. The Defendants’ solicitors refused to accept instructions and the losses from the High Court can be visited upon the Defendants. He has indicated that his personal life has extreme problems and I don’t doubt that but he seems to allege that those problems are the fault of the Defendants and the monetary claimed by the Plaintiff are in my view fanciful. I must grant the Defendants’ application and strike out the Particulars of Claim on both grounds, that they disclose no cause of action and are frivolous and vexatious. I am not just striking out the Particulars of Claim but the action is struck out.”
“For some three years, between July 1998 and25 August 2001 , the Claimant and/or other of his solicitors did nothing save for a little activity for a few weeks in June and July 1999. On18th July 1999 , the Claimant wrote to the Defendant’s solicitors, saying that he had lodged an appeal. The Defendant’s solicitors replied, expressing surprise that he had lodged an appeal when his case had been struck out as long ago as8th July 1998 and they had heard nothing since. Nevertheless the Defendant agreed not to pursue the taxation pending the outcome of the appeal. The Defendant then chased the Claimant and/or his solicitors to see what was happening to the appeal. They got no satisfaction, save for the following. On18th June 1999 , the Claimant told them that he was pursuing his appeal and hoped that [his] solicitor would be contacting the court to progress it. On6th July 1999 , Johnson Sillett Bloom, solicitors acting for the Claimant, wrote to the Defendant’s solicitors, saying they were taking instructions on the circumstances surrounding his lodging of the appeal and in the meantime asked the Defendant to take no steps to enforce the costs order, provided of course that they kept the Defendant’s solicitors informed of the progress of the application for legal aid for the appeal. The Defendant’s solicitors chased the Claimant’s solicitors several times, but heard nothing until, out of the blue … the court informed the parties of the date of the appeal, namely,7th May 2002 . To my mind, the conduct of the Claimant in failing to take any steps to deal with his appeal between July 1998 and25th August 2001 , with the exception of those letters in June and July 1999, is unreasonable.”
“If any existing proceedings have not come before a judge, at a hearing or on paper, between26 April 1999 and25 April 2000 , these proceedings shall be stayed.”
“Any party to those proceedings may apply for the stay to be lifted.”
“It seems to me that a highly relevant factor on the grant or refusal of the stay is the strength of the appeal. Quite apart from the passage of time, it seems to me that there are no reasonable prospects of successfully appealing the order of District Judge Hasan, an experienced district judge, who gave a short but clearly reasoned ruling for her decision and one which was well within the legitimate ambit of her discretion. She had given the Claimant a number of chances to put his house in order, including an adjournment, in the hope that he would get legal aid.”
“CPR 3.1 gives the court fairly wide case management powers, the exercise of which may well depend in significant part on how a party has conducted the proceedings to date: see particularly 3.1(2)(f) and (m). Further,CPR 3.4 (2)(b) and (c) in terms respectively empower the court to strike out a statement of case if it is an abuse of the process or there has been a failure to comply with a rule, practice direction or court order. In my judgment, it is plain from these Rules and the overall scheme of the CPR that the conduct of a party relevant to the exercise of the powers conferred byCPR 3.1 (2)(f) and (m) andCPR 3.4 (2) (b) and (c) is not restricted to conduct involving bad faith. Instead, the conduct in question must be looked at in the round and, even if it cannot be shown that there has been bad faith, if in respect of a particular incident or having regard to a course of conduct overall, a party has acted oppressively or very unreasonably, it may still be appropriate to stay his claim conditionally or unconditionally or strike it out or order a payment into court.”
“The Defendant’s counsel … does not rely on the expression ‘oppressively’ in that passage, but relies on the phrase ‘very unreasonably’. I am content to leave out the adverb ‘very’. I characterise the conduct of the Claimant as unreasonable and have no hesitation in imposing the stay. If the costs are paid and an application is made to lift the automatic stay, the court will have to cross that bridge when it comes to it.”
“1. The CPR shall apply to this action. 2. The Claimant’s appeal listed to be heard on7th May 2002 be stayed pending payment by the Claimant of the Defendant’s costs pursuant to the judgment of District Judge Hasan dated9th July 1998 in the sum of£14,592.64 plus interest of£4,390.40 up to today’s date and continuing at a daily rate of£3.20 . 3. The hearing on7th May 2002 be vacated. 4. The Claimant do pay the Defendant’s costs of this application summarily assessed at£4,883.44 . 5. Permission to appeal be refused.”
“That lack of prosecution may have reflected the limitations arising from Mr Ali’s status as a litigant in person. It may also have been contributed to by the incompetent, half-hearted intervention of solicitors purportedly acting for Mr Ali. Suffice it to say that over a considerable period of time the Defendant’s solicitors were unaware that there was an appeal extant and again the solicitors apparently were taken by surprise when on17th December 2001 the court fixed a date for the hearing of the appeal, that is7th May 2002 .”
“First, the practical effect of the order is to dismiss Mr Ali’s appeal. He is unable by virtue of the order to pursue it unless he finds the monies that are the subject of the original order and those monies if and when found are not to be paid into court but paid over to the Defendant. In a practical sense there is no difference from Mr Ali’s standpoint between having the appeal stayed upon that condition and having the appeal dismissed.”
“I turn then to Mr Ali’s further point. He is confronted with the loss of an appeal without having the merits investigated by the court. Judge Green himself made it clear that he was not looking into the merits at all of the appeal in question. Thus it is I am concerned particularly with the terms on which the stay was imposed, which terms involved the payment of costs as ordered by the District Judge direct to the Defendant rather than into court. I am also concerned about the notion of dealing with this matter by way of a stay, more particularly when the matter was due to be heard by way of an appeal within the ensuing month. The notion of a stay is arguably inherently unsatisfactory. It can be tested. Let it be supposed that Mr Ali pays the money now as is required by the order. Then presumably the appeal becomes extant and is then to be pursued. We have in effect a very unhappy halfway house. Thus it is that the order as currently made cries out for review and it does so with, as I concede (conceive?), a real prospect of success.”
“All that said, I cannot see that the matter can fairly be left as it presently is and that the matter therefore can be further ventilated on an inter partes basis when the appeal that I am permitting now is heard.”
“28. The learned judge ordered that the claimant should pay the entirety of the costs of the action, which themselves were only due from the claimant to the defendant pursuant to the very order which the claimant was seeking to appeal. In other words, the defendants sought the fruits of the judgment, which was then the subject of appeal, and argued before me that this stance was entirely legitimate on the basis that the claimant had not sought a stay of the order as to the payment of costs pending appeal. 29. Be that as it might, in my judgment it was not appropriate for the court to stay the action pending the payment of costs which were subject to appeal. What the learned judge was entitled to do, however, was to point to the fact that, prior to commencing his appeal, Mr. Ali had to overcome the problem of the automatic stay which itself would involve a substantial expense, given that the defendants would be entitled to contend that the circumstances did not justify the removal of the stay. The automatic stay was entirely a consequence itself of the failure expeditiously to prosecute the appeal. It seems to me that the learned judge, if exercising his power as he was entitled to do, should have restricted his order to a sum which reflected the costs that would be incurred in seeking to remove the stay and in requiring those costs to be paid not direct to the defendants but rather into court as security purely for the application to remove the stay rather than the costs of the entire action. 30. To that extent and to that extent only, I take the view that the learned judge fell into error, although I accept that he did have power, as I have said, under 3.1(6)(b) [to order] the payment into court of costs that have been incurred. I make it clear, following the decision of Field J, to which I have referred [viz Reed v Oury], that had there been other outstanding orders for costs, that would indeed have been an appropriate decision but there were not. All the costs involved were costs that had only been ordered to be paid by virtue of the order which Mr Ali, the claimant, sought to appeal.”
“31. In my judgment, it would be reasonable and appropriate to reflect that difference by reducing substantially the amount which Mr Ali must find in order to justify the removal of this stay quite apart from going back before the judge to remove the automatic stay. In the circumstances I order that the claimant must pay into court the sum of£1,750 in order to justify the removal of the stay imposed by Judge Green. That seems to me to be sufficient security for the costs of appearing before the judge to remove the automatic stay which is the next step before Mr Ali can go on to seek to appeal the order of the district judge. In assessing the sum I have had some regard to Mr Ali’s financial position. 32. Mr Justice Holland was concerned that the effect of the order would be to dismiss Mr Ali’s appeal on the basis that he would be unable to pursue it without finding money to pay into court. He observed that in a practical sense there was no difference from Mr Ali’s standpoint between having the appeal stayed upon the condition, albeit in a very much larger sum being paid into court, and having the appeal dismissed. 33. Mr Charlwood submits that the circumstances of this case justify the order, which would in any event have the same effect, if Holland J is correct, as that which Field J made in the case to which I have referred. In that regard, in my judgment, a broad view of the merits does in fact justify the view being taken. The learned judge took the view that Judge Hasan’s decision was likely to be unassailable. Mr Justice Goldring observed on paper that any other decision would have been surprising. Mr Justice Holland himself observed that the appeal would be difficult to conduct, not least because of the lamentable lack of prosecution, and that it may be found to be totally bereft of merit. It is common ground that Mr Justice Eady made similar observations. 34. Thus, it may be that the claimant requires to rethink whether his claim is worth the effort that he is undeniably putting into its present prosecution. That is not, however, for me to decide. In my judgment, doing justice between the parties, it is right for me to make the order to which I have referred, recognising that the sum is far less substantial than ordered by the learned judge and represents no more and possibly rather less than the costs which the claimant is likely to be required to meet in any event, should he seek to remove the automatic stay.”
“In my view the starting point in any case where a stay is sought in circumstances which are not provided for by Statute or Rules of Court should be the fundamental principle that in this country an individual (who is not under a disability, a bankrupt or a vexatious litigant) is entitled to untrammelled access to a court or first instance in respect of a bona fide claim based on a properly pleaded cause of action, subject only to the sanction or consideration that he is in peril of an adverse costs order if he is unsuccessful, in respect of which the opposing party resort to the usual remedies of execution and/or bankruptcy if such order is complied with. This principle is of course subject to the further proviso that, if the court is satisfied that the action is not properly constituted or pleaded, or is not brought bona fide in the sense of being vexatious, oppressive or otherwise an abuse of process then the court may dismiss the action or impose a stay whether under the specific provisions of the RSC or the inherent jurisdiction of the court. Imposition of a requirement that security for costs be provided subject to the sanction of a stay is a plain fetter upon the exercise of such right of access. That is a principle underlying and recognised by Order 23 which excludes from its regime as to the provision of security any individual who does not fall within the categories specifically provided for.”
“3.1(1) The list of powers in this rule is in addition to any powers given to the court by any other rule or practice direction or by any other enactment or any powers it may otherwise have. (2) Except where these Rules provide otherwise, the court may – … (f) stay the whole or part of any proceedings either generally or until a specified date or event; … (m) take any other step or make any further order for the purpose of managing the case and furthering the overriding objective. (3) When the court makes an order, it may – (a) make it subject to conditions, including a condition to pay a sum of money into court; (b) specify the consequence of failure to comply with the order or a condition. … (5) The court may order a party to pay a sum of money into court if that party has, without good reason, failed to comply with a rule, practice direction or a relevant pre-action protocol. (6) When exercising its power under paragraph (5) the court must have regard to – (a) the amount in dispute; and (b) the costs which the parties have incurred or which they may incur. (6A) Where a party pays money into court following an order under paragraph (3) or (5), the money shall be security for any sum payable by that party to any other party in the proceedings …”
“21. I pass, therefore, to the more difficult second question which arises on this appeal: what should be the court’s approach to the exercise of its wider new jurisdiction to order security for costs and, more narrowly, was such an order properly made in the particular circumstances of this case? 22. The first point to be made is I think this. Before ordering security for costs in any case (ie whether or not within rule 25) the court should be alert and sensitive to the risk that by making such an order it may be denying the party concerned the right to access to the court. Whether or not the person concerned has (or can raise) the money will always be a prime consideration, not least sincearticle 6 of ECHR became incorporated into domestic law. Paradoxically, of course, the more difficult it appears to be for the person concerned to raise the money, the more obvious becomes the need for an order for security to protect the other party against the risk of incurring irrecoverable costs. The court will have to resolve that conundrum as best it may. 23. Assume, then, that in a given case the court concludes that an order for security would not unfairly deprive the party concerned of his ability to litigate the dispute. Should such an order then be made? In addressing this question it is right to bear in mind that under the new rules it is not just the claimant against whom an order for security for costs can be made; it can also be made against the defendant. Under the old rules, of course, it was only the defendant who could be ordered to pay money into court, principally in proceedings for summary judgment, as a condition of his being allowed to defend the claim. That payment in was not, of course, in respect of costs, but rather to provide some security for the claim. But if, as a condition of pursuing an unpromising defence, it is appropriate to secure the claim, why not also the claimant’s costs of advancing the claim? And if that, why is it not at least as appropriate to require someone advancing an unpromising claim to secure the defendant’s costs. He, after all, has chosen to involve the defendant in litigation and the defendant has no option but to concede the claim or incur costs in resisting it. Such no doubt was the thinking underlying the new rule 24. 24. Now, it is clear, the court has an altogether wider discretion to ensure that justice can be done in any particular case. Obviously relevant considerations, besides the ability of the person concerned to pay, will be (a) his conduct of the proceedings (including in particular his compliance or otherwise with any applicable rule, practice direction or protocol), and (b) the apparent strength of his case (be it claim or defence). And these considerations, of course, are expressly reflected in the new rules governing the court’s power to order payment into court: rule 3.1(5) dealing expressly with compliance, rule 24 with the probabilities or otherwise of success. 25. That, however, is by no means to say that the court should ordinarily penalise breaches of the rules and the like by making orders for payment into court under rule 3.1(5). Quite the contrary. The one case drawn to our attention in which this question has been considered - Buckley J’s judgment in Mealey Horgan plc v Horgan (transcript24 May 1999 , briefly reported in The Times,6 July 1999 ), to which reference is made in paragraph 3.1.5 of the Annual Practice - held that it would be inappropriate to order a defendant to give security as a penalty for failure to serve witness statements in time when that had prejudiced neither the trial nor the claimant. Buckley J suggested, however, that such an order might be appropriate if “there is a history of repeated breach of timetables or of court orders or if there is something in the conduct of the party which gives rise to suspicion that they may not be bona fide and the court thinks the other side should have some financial security or protection”
“That consideration is reinforced by the greater significance, since theHuman Rights Act 1998 came into force, which the court attaches to not impeding access to justice.”
“It appears that the Plaintiff did lodge an appeal in July 1998. The appeal was returned to him as he did not state a time estimate. According to our records it appears that the appeal was not returned to the Court by the Plaintiff so no hearing was listed.”