Pre-action conduct and limitation — SQE1 DR question
A worked single-best-answer question on pre-action conduct and limitation, with why each wrong option is wrong — the way SQE1 traps candidates.
Bricklane Supplies Ltd, a builders' merchant, supplied materials on credit to Martin, who trades as a sole trader plumber. Martin has not paid three invoices totalling £8,400, despite several informal reminders by telephone. Martin has not raised any complaint about the goods. Bricklane's credit controller asks its solicitor what must be done before a claim can properly be issued against Martin.
Which of the following best describes what Bricklane should do before issuing proceedings?
- ASend Martin a Letter of Claim complying with the Pre-Action Protocol for Debt Claims, enclosing the information sheet and reply form, and allow him 30 days to respond.
- BSend Martin a letter under the Practice Direction on Pre-action Conduct and allow him 14 days to respond, as no specific protocol applies to unpaid invoices.
- COffer to mediate, because a claimant may not issue proceedings until mediation has been attempted and has failed.
- DNothing, because pre-action requirements do not apply where the debt is undisputed.
- EServe a statutory demand on Martin, because a statutory demand must precede any court claim to recover a debt from an individual.
Show answer and reasoning
Rule: Where a business claims a debt from an individual or sole trader, it must send a Letter of Claim under the Pre-Action Protocol for Debt Claims and allow 30 days for a reply before issuing.
- B The general Practice Direction applies only where no specific protocol applies, and the Debt Claims protocol covers a business claiming from a sole trader. (right rule, wrong facts)
- C ADR must be considered and the court may order it, but there is no rule that mediation must be attempted before a claim is issued. (wrong rule)
- D Pre-action conduct obligations apply to debt claims whether or not the debt is disputed. (wrong rule)
- E A statutory demand is a step towards bankruptcy, not a prerequisite to an ordinary money claim. (wrong rule)
Source: Pre-Action Protocol for Debt Claims; Practice Direction – Pre-Action Conduct and Protocols