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Tomlin order meaning

What does Tomlin order mean?
A Tomlin order is a settlement device used in civil litigation: the court stays the proceedings on agreed terms, giving the parties liberty to apply to lift the stay and enforce the settlement if there is default. The operative order records only the stay and liberty to apply; the detailed terms are set out in a separate, usually confidential, schedule. The schedule is contractual. It can include matters beyond the pleaded issues, and is not part of the order or the public court file. The concept is derived from English case law and practice rather than statute. In England and Wales and in Northern Ireland it is a standard form of consent order used to conclude proceedings while preserving an easy enforcement route. To enforce, a party applies within the stayed claim for an order giving effect to the scheduled terms (for example, judgment for a sum due or specific performance), rather than issuing fresh proceedings. Unlike a consent order that embodies the terms, a Tomlin order keeps the terms private and the court will not vary them; it will only intervene on contract law grounds. Scotland and Ireland use similar mechanisms, though the label “Tomlin order” is less common.
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View the related Checklists about Tomlin order

CHECKLISTS
Civil Settlement Agreements: Negotiation, Drafting, ADR, Part 36, 'Without Prejudice' and 'Subject to Contract', Tomlin Orders, Deeds and Third-Party Rights—Checklist (England and Wales)

When to seek settlement? This checklist flags common issues that can emerge when negotiating and drafting a settlement agreement. For step-by-step guidance on negotiating and preparing a settlement agreement, consult the following Practice Notes: How to agree and draft a settlement agreement (non-employment claims) Settling disputes—how to document a settlement Settling disputes—drafting the settlement agreement Keep settlement in mind at every stage of a dispute, including pre-action. Consider the full range of resolution routes, such as direct negotiation between the parties or their legal advisers, assessing whether a Part 36 offer is suitable, or engaging in assisted alternative dispute resolution (ADR), for example mediation. Following a rule change in October 2024, the court may now order parties to participate in ADR (see CPR 3.1(2)(o)). Review any contractual duties relating to settlement—such as a tiered dispute resolution clause—and ensure compliance with pre-action protocol requirements that encourage and facilitate settlement efforts. For additional context, see: Settling disputes—what, when and why settle?...

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View the related News about Tomlin order

NEWS
Construction law weekly: TCC on adjudication settlement scope and BLO procedure; Welsh building and infrastructure reforms; CPR PD updates; CLC letter; HMRC CIS changes; new JCT sub-contract precedents

In this issue: Adjudication Building safety Planning Litigation Construction industry news Daily and weekly news alerts New and updated content Construction trackers Adjudication Contractual interpretation in adjudication disputes (Dawnvale v Hylgar) In Dawnvale Cafe Components Ltd v Hylgar Properties Ltd [2024] EWHC 1199 (TCC), the court reviewed the reach of a Tomlin Order/Settlement Agreement concluded after settling enforcement of an adjudicator’s decision, and assessed whether its wording barred a proposed second adjudication. It also had to determine if that proposed reference raised a dispute already resolved by the first adjudication. This ruling underlines the need for exact drafting in settlement agreements and the prospect of further claims where matters are not expressly concluded. Written by Michael O’Connor, partner at Charles Russell Speechly LLP. See News Analysis: Contractual interpretation in adjudication disputes (Dawnvale v Hylgar). Building safety Building liability orders: court gives guidance on procedures in first reported case (Wilmott Dixon v Prater) ...

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NEWS
Court of Appeal (England and Wales) on satisfaction of consent orders, the same-damage bar and Tomlin order distinctions—Vanden Recycling v Kras Recycling

Original news Vanden Recycling Ltd v Kras Recycling BV [2017] EWCA Civ 354 What are the practical implications of this case? This ruling, in brief: affirms that once a judgment has been satisfied, further claims against other tortfeasors responsible for the same harm are generally precluded as a matter of course however, satisfying a settlement—rather than a judgment—will only preclude claims against other tortfeasors for the same harm if the amount agreed and paid was intended to determine and fix the claimant’s loss in full acknowledges (and succinctly sets out) the differences and practical distinctions between consent orders and Tomlin orders indicates that the court will look at the 'substance and effect' of a consent order’s terms and, if these are 'the same as would be made following a judgment', it is proper to treat the consent order as a judgment for the rule that satisfaction of a judgment bars claims against tortfeasors liable for the same damage (para [50]) ...

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NEWS
Register of members is conclusive for voting and winding-up resolutions: Bland v Keegan [2024] EWCA Civ 934 on rectification, forgery and insolvency appointments

Bland and another v Keegan [2024] EWCA Civ 934 What are the practical implications of this case? The ruling bears significant consequences for practitioners in corporate law, insolvency, and dispute resolution. The main points are: Finality of the Register of Members: It reinforces the assumption that a company’s register of members is definitive as to who the members are, underscoring the importance of keeping it fully accurate for governance and decision-making Rectification of the register: The court clearly emphasises the importance of seeking correction under section 125 of the Companies Act 2006 (CA 2006) where errors are alleged, signalling the need for lawyers to master the rectification route, the evidential demands, and the prospect of the court granting retrospective rectification Dispute resolution and settlement: It explores the effects of resolving proceedings without a hearing, exemplified by a compromise via a Tomlin Order here. Advisers should ensure settlement terms comprehensively resolve every issue, including the position of the register of members and the interests of...

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View the related Practice Notes about Tomlin order

PRACTICE NOTES
Tomlin orders in England and Wales: comparative court requirements on form, filing, scrutiny of settlement terms and file inspection

This Practice Note outlines and contrasts how different courts handle the lodging of draft Tomlin orders and the approval of such orders by consent once a dispute in existing proceedings has been resolved and the parties seek a stay pending fulfilment of the agreed terms. It explains the required format of the document submitted to the court, the manner of filing, and the position after the court makes an order. It also draws the line between those courts (a minority) that scrutinise the parties’ agreed provisions for enforceability and the majority that will not examine that question but will ensure the order is cast in the correct form to permit a Tomlin order. Lastly, it considers what materials are retained on the court file once an order has been made. Guidance is given on the form to use, the route for submission, and the immediate administrative consequences once the court makes the consent order in practice. Making Tomlin orders In 1927, Tomlin J, a judge of the High...

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PRACTICE NOTES
Are client bill instalments ‘credit’? CCA 1974 analysis, SRA position, interest, exemptions and Tomlin order risks (England and Wales)

This Practice Note considers the frequent need for law practices to accept staged payments towards an unpaid invoice. The SRA has produced a case study asserting that doing so amounts to entering a regulated credit agreement as a lender, requiring a formal consumer credit agreement. This Practice Note sets out why we disagree with the SRA on that point, drawing on settled case law and the principal specialist text on consumer credit. Bear in mind the consumer credit framework only covers clients who are individuals and very small partnerships, because the Consumer Credit Act 1974 (CCA 1974) does not capture arrangements with larger partnerships or bodies corporate. See Practice Note: Consumer credit and client fee arrangements—What is a consumer credit agreement? SRA requirements The SRA Financial Services (Scope) Rules define which regulated consumer credit activities may be carried out by a firm authorised by the SRA but not supervised by the FCA. See Practice Notes: Consumer credit and law firms and Consumer credit and client fee arrangements. The...

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PRACTICE NOTES
Consumer credit and law firm fees: CCA 1974 compliance, FCA/EPF scope, SRA rules, instalment exemptions and Tomlin orders (England and Wales)

Law firms might be caught by the consumer credit regime: by acting as a lender under a consumer credit agreement, for example regarding their fees by undertaking ancillary consumer credit activity, such as debt adjusting In light of the Court of Appeal decision in CFL Finance Ltd v Laser Trust, a creditor that enters into a settlement agreement appended as a schedule to a Tomlin Order may fall within the consumer credit regime where the settlement itself amounts to a consumer credit agreement—see also News Analysis: Does a Tomlin order provide ‘credit’ under the Consumer Credit Act 1974? (Gertner v CFL Finance). The same risk can arise for a law firm’s own settlement document, for instance when compromising a client debt claim, as it can for other parties. This Practice Note addresses your arrangements for charging clients. You may additionally consult Precedent: Fee arrangement and consumer credit—decision tree, Practice Note: Instalment payment of an outstanding bill and Q&A: Can I accept payment of...

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View the related Precedents about Tomlin order

PRECEDENTS
Precedent settlement agreement (long form) for construction disputes: full and final settlement with mutual releases, indemnities and optional Tomlin/Consent order (English law)

This Settlement Agreement is dated [ insert date ] (the ‘Settlement Date’) and entered into by the following parties (each a ‘party’, together the ‘parties’): Parties [ insert name of party A ], a company incorporated in [ England and Wales ], company number [ insert company number ], with registered office at [ insert registered office ] ('[ Name of party A ]'); and [ insert name of party B ], a company incorporated in [ England and Wales ], company number [ insert company number ], with registered office at [ insert registered office ] ('[ Name of party B ]'). Background (A) The parties have entered into a construction contract dated [ insert date ] in respect of the [ insert description of works/project, eg ‘design and construction of a property known as Bloggs House' ] (the ‘Contract’). (B) [ The parties are involved in a dispute [ concerning [ insert details of the dispute, including material...

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PRECEDENTS
Precedent post‑commencement settlement agreement (England and Wales): Tomlin order and stay; payment/instalments and security; undertakings; mutual release; confidentiality/non‑disparagement; ADR; costs; enforcement; warranties and indemnities

[DRAFT ]SETTLEMENT AGREEMENT (for settling disputes post-commencement of proceedings) [WITHOUT PREJUDICE AND SUBJECT TO CONTRACT [ SUBJECT TO SIGNATURE BY PARTIES AND/OR SUBJECT TO COURT APPROVAL ] ][CONFIDENTIAL] This Agreement is entered into on the day of 20[ insert year ] Parties: [ insert name of party ], a company incorporated in England and Wales (company number [ insert company number ]), with its registered office at [ insert address ] (‘Party A’) [ and ] [ ; ] [ insert name of party ], a company incorporated in England and Wales (company number [ insert company number ]), with its registered office at [ insert address ] (‘Party B’). together, the ‘Parties’ Whereas On [ insert date ], [ insert name of claimant ] issued court proceedings in the [ insert level of court, eg, High Court of Justice, King’s Bench Division ] under claim number [ insert claim number ], against [ insert name of...

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PRECEDENTS
Consent Tomlin Order Precedent with Schedule: Stay of Proceedings, Liberty to Apply, Costs and Payment Terms (England and Wales)

Claim No. [ enter claim number ]...

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