Legal Practice Notes

Guideline Hourly Rates ( GHR) for civil and commercial matters This Practice Note reviews the Guideline Hourly Rates ( GHR) applicable to civil and commercial work. On a summary assessment, the court judges what costs a party may recover by weighing solicitors' charge-out rates alongside the GHR. The GHR were increased for inflation with effect from 1 January 2026 in line with the Services Producer Price Index ( SPPI), and will thereafter be adjusted each year in accordance with SPPI. In routine practice, the courts also turn to the GHR when deciding whether costs are reasonable on a detailed assessment. This Practice Note explains how to interpret the bands A- D, which are determined by the lawyer’s location, qualifications and experience, and it offers guidance to aid understanding of the rates. Authorities demonstrate the extent to which the courts exercise a measure of...

Issued in June 2015, this guidance from The Chartered Governance Institute ( CGI) offers advice...

What is a guarantee? A guarantee is a commitment between a guarantor and a creditor, under which the guarantor agrees to be liable for another party’s obligations (the principal). For a guarantee to be valid, it must be in writing and signed by the guarantor, or by an agent authorised to sign on their behalf. Why are guarantees relevant to insolvency? They offer a creditor reassurance for sums owed by a debtor where there are doubts about the debtor’s long‑term solvency. They are frequently used by: banks that lend to companies and require guarantees from other group companies or company directors landlords, who often secure guarantees from the tenant company’s parent or from one or more directors factoring companies As guarantees are typically called upon when a debtor is insolvent or in financial distress, they appear regularly in insolvency...

Introduction What is groundwater? In brief, groundwater is water stored beneath the surface. Rainfall gathers and then infiltrates the soil, percolating through soils and rocks into aquifers—layers of porous rock or sediment. The British Geological Survey notes that groundwater supplies around one third of the public water in England and makes an important contribution in Wales and Scotland. What is groundwater activity Government guidance explains that a groundwater activity includes: discharging a pollutant that causes, or could cause, a direct or indirect input to groundwater any other discharge that may lead to a direct or indirect pollutant input to groundwater an activity subject to a Schedule 22 notice that has taken effect an activity, carried out as part of another class of regulated facility, that may cause such a discharge The guidance further states it is an offence to cause or knowingly permit a...

What are ground source heat pumps? Ground source heat pumps ( GSHPs) are central heating and/or cooling systems that transfer heat between the building and the ground. They draw on stored solar and ground energy, raising it to a more useful temperature for the heating system. In summer, they can remove heat from the building and release it into the ground to provide cooling. This practice is common in China, Japan, the USA and parts of Europe. For further details on global GSHP patterns, refer to the Renewables Global Status Report. How ground source heat pumps work Soil temperature varies by location, but in the UK it stays stable at around 11–12°C once you go below roughly 5 metres. At this depth the ground forms a large thermal store, absorbing the sun’s heat in summer and giving it back in winter. GSHPs capture this...

This Practice Note outlines green loans and the principal considerations when preparing a green loan agreement. It centres on the Green Loan Principles ( GLP) issued by the Loan Market Association ( LMA), the Asia Pacific Loan Market Association ( APLMA) and the Loan Syndications and Trading Association ( LSTA)... Clarifies the meaning of a green loan Introduces the GLP and the accompanying GLP guidance Sets out the four core components of a green loan under the GLP and summarises the related guidance Condenses GLP and GLP guidance on what qualifies as a green loan, on reviews, and on greenwashing risks Provides sources for precedent wording, including the Loan Market Association draft provisions, plus drafting pointers What is meant by a green loan? Under the GLP, green loans encompass any form of loan instrument and/or contingent facility (for example, bonding lines,...

Background to the Great Britain Classification, Labelling and Packaging Regulation Trade in substances and mixtures affects not only the market in Great Britain ( GB), but also commerce around the world. Before Regulation ( EC) 1272/2008 — the EU Classification, Labelling and Packaging Regulation ( EU CLP Regulation) — was adopted in 2009, common criteria for classification and labelling had already been devised within the United Nations ( UN), producing the Globally Harmonised System of Classification and Labelling of Chemicals ( GHS), intended to enable global trade while safeguarding human health and the environment. The EU CLP Regulation took effect on 20 January 2009 in the EU (which then included the UK), and Recital 6 expresses the objective of advancing worldwide harmonisation of classification and labelling by incorporating the internationally agreed GHS criteria. Under the EU CLP Regulation,...

Background One of the core tenets of an effective insolvency regime is that an insolvency practitioner (described in this Practice Note as an ‘ IP’) may examine the conduct of the insolvent party (described in this Practice Note as the ‘ Debtor’) in the period preceding insolvency, to determine whether earlier transactions have improperly disadvantaged the valid claims of creditors by reason of antecedent dealings. For instance, a Debtor facing financial distress might have disposed of particular assets at undervalue to generate quick cash in the short term. Yet, by doing so (and effectively placing those assets beyond creditors’ reach) the Debtor may have weakened creditors’ prospects of recovery and nullified any security they held over those assets (for example, a floating charge), rendering it redundant. Although an IP will, for the most part, be focussed on a snapshot of the Debtor’s assets and...

What is a global claim? As schemes grow in scope, technical intricacy and cost, claims tend to increase as well. These factors, among others, make straightforward claims harder to present; when there are multiple breaches of contract and other matters, their consequences can be tangled, overlapping and intensified. Put simply, a global claim arises where a contractor has suffered loss due to two or more employer‑risk events but is unable, or unwilling, to pinpoint the loss or delay attributable to each separate event. As a result, a single claim is pursued for all losses stemming from the various events. It is also worth noting that global claims are sometimes described in commentary as ‘total cost’, ‘cumulative effect’ or ‘cumulative impact’, ‘composite’ and/or ‘rolled‑up’ claims. In truth, these are variants of global claims and refer to the way the claim is...

This Practice Note examines questions of arbitral jurisdiction in arbitration conducted under German law. Note: all German judgments mentioned in this Practice Note are not reported by Lexis Nexis®. Introduction to jurisdiction under German arbitration law Germany is widely regarded as an arbitration-friendly forum. Its arbitration regime is contained in Book 10 (sections 1025–1066) of the Code of Civil Procedure, the Zivilprozessordnung ( ZPO), which is closely aligned with the UNCITRAL Model Law on International Arbitration (the Model Law). An unofficial English version of the ZPO has been issued by the German Ministry of Justice, and the quotations from the ZPO in this Practice Note rely on that translation. With respect to objections to an arbitral tribunal’s jurisdiction, German law does not confer ultimate authority on the tribunal to rule on its own competence. In other words, German law does not recognise exclusive ‘...

Numerous legal practices rely on general advice files, or ‘general files’, to log (and charge for) assorted ad hoc guidance for longstanding clients. They are administratively straightforward and favoured by fee earners, as there is no requirement to open a fresh matter for minor queries, reducing time and paperwork and associated administrative burdens. The SRA Standards and Regulations do not forbid the use of general files. How you arrange your file administration remains a decision for the firm. Nevertheless, general files present risks and, where they are adopted, they ought to be handled cautiously indeed. This Practice Note examines risks arising from law firms’ use of general files and outlines methods by which a firm can mitigate, and control, those risks. A single general file may evolve into a storehouse for varied advice and communications, from a brief telephone query, or...

Linking headlease rent to underlease rents The rent payable under a headlease can be tied directly to the rent paid, or payable, under actual or anticipated underleases granted out of it. In such a structure, the headlease rent is often described as a 'geared rent', 'shared rent', 'side-by-side rent' or 'indexed rent', and a lease featuring this type of rent is sometimes referred to as an 'equity-sharing lease'. Typically, the headlease provides for a base rent, with an additional amount calculated and payable as a defined percentage of the tenant’s 'gross revenue' (as defined in the headlease) arising from underlettings—see Calculating the tenant’s 'gross revenue' below. This type of arrangement: is really only suitable where underlettings are envisaged when the headlease is granted—accordingly, it is well suited where a freeholder grants a long headlease (typically in excess of 125 years) to a developer who will...

are commonly taken by a close relative of the person who has died. If no suitable family member is able to act, an executor named in the Will may need to assume this role when circumstances demand it. Personal representatives should promptly and carefully review the Will for any statements by the testator about the handling of their remains, bearing in mind that such instructions are not legally binding at law. Even so, adherence to Article 8 of the European Convention on Human Rights and Fundamental Freedoms 1950 is necessary in practice, recognising the right to respect for private and family life, home and correspondence. Accordingly, the deceased’s preferences concerning funeral arrangements ought to be given appropriate consideration and treated with due weight. This position is not entirely settled, so particular care is advisable. Be aware that innovative, more...

UK Prospectus Regulation ( Retained...

The Financial Services Enforcement Database brings together comprehensive details on all substantive FCA and PRA Final Notices and, where available, Decision Notices, from 2014 onwards. Searches can be run and narrowed by a range of fields, including: rule/legislation breach keyword such as ‘ Open and cooperative’ sector date financial penalty aspects of financial penalty analysis outcomes including redress and prohibition orders other actions such as referrals to the Upper Tribunal Non-compliance with a requirement under Part XI of the Financial Services and Markets Act 2000 ( FSMA 2000)—for instance, failing to supply documents or information, or supplying false information—can have serious consequences. The process for addressing such non-compliance during a Financial Conduct Authority ( FCA) investigation is set out in FSMA 2000, s 177. Failure to comply with an FCA information or document...

Part XII of the Financial Services and Markets Act 2000 ( FSMA 2000) Part XII of FSMA 2000 obliges controllers and prospective controllers to secure approval from the Financial Conduct Authority ( FCA) or the Prudential Regulation Authority ( PRA) prior to acquiring, or increasing, control in a UK authorised firm, and to inform the appropriate regulator when they decrease or cease such control thereafter. The FCA and PRA likewise expect UK authorised firms to notify them when a person reduces, or no longer holds, control in the firm. This Practice Note considers the criminal and regulatory consequences of failing to follow the change of control regime in FSMA 2000, Part XII and the linked FCA and PRA rules. It also summarises the powers available to the FCA and PRA under the controllers regime to: object to an individual or entity holding control over a UK...

NOTE—to check if notification thresholds in French Polynesia and worldwide are reached, see: Where to Notify. 1. Have there been any recent developments regarding the regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in French Polynesia? French Polynesia, a French overseas territory, benefits from enhanced autonomy from mainland France under a special status. Consequently, since 2015 it has had its own merger control regime, set out in Articles LP 310-1 et seqq. of the Code de la concurrence de la Polynésie française ( CCPF), and applied from 2016 by the Autorité Polynésienne de la Concurrence ( APC). In 2017, the APC issued dedicated guidance on the scope and procedure of merger control (the APC Guidelines), updated in 2019. Despite being distinct, the regimes are closely aligned and the two competition...

This Practice Note provides guidance on applying for a freezing injunction (also known as a Mareva injunction or freezing order) in support of proceedings outside the jurisdiction of the courts of England and Wales pursuant to section 25 of the Civil Jurisdiction and Judgments Act 1982 ( CJJA 1982). It outlines the court’s discretionary authority to grant this form of relief and when that discretion may properly be exercised. Alongside CJJA 1982, s 25, the Note concentrates on construing and applying the relevant CPR provisions. Depending on the forum in which the case is brought, additional requirements may apply—see the main section headed: Court specific guidance. For help with applications and the governing principles, consult these Practice Notes: Freezing injunctions—guiding principles Freezing injunctions—post-judgment Freezing injunctions against third parties—the Chabra jurisdiction Freezing injunctions—the application Freezing...

Freezing orders Freezing orders were once referred to as Mareva injunctions, taking their name from the claimant in one of the earliest decisions to grant such relief. A freezing order is a type of injunction restraining a defendant from moving assets out of the jurisdiction (ie England and Wales) and/or from dealing with assets, whether located domestically or, in appropriate cases, abroad. The rationale for granting a freezing injunction is to preserve the defendant’s property so that, should the claimant secure judgment against the defendant, those assets remain available to satisfy any award of damages and costs. A freezing order may therefore be suitable where there is reliable evidence that a defendant intends to dissipate assets to frustrate a claim for damages against him. In an employee competition context, such relief is unlikely to be pursued unless one or more defendants are accused of...

This Practice Note sets out advice on preparing a freezing injunction (frequently described as a Mareva injunction or freezing order). It reviews the updated model order for such relief and clarifies why specific provisions and undertakings ought to appear within a freezing injunction. For further clauses you may need to consider, contingent on the court handling your case, consult the principal section headed Court-specific guidance. For insight into the application steps and the criteria the court will use, refer to these Practice Notes: Freezing injunctions—guiding principles Freezing injunctions—post-judgment Freezing injunctions against third parties—the Chabra jurisdiction Freezing injunctions—the application These resources cover application process and the court’s test for applicants and respondents. For broader assistance on drafting interim injunctions, see Practice Note: Interim injunctions—drafting the order. 6 April 2025 changes The CPR rules governing interim injunctive remedies, including freezing orders, were amended with effect from 6 April 2025. Notably, CPR 25...