Legal Practice Notes

This Practice Note examines the need to complete Court Form N510 ( Notice for service out of the jurisdiction where permission of the court is not required) when serving a claim form outside the jurisdiction without the court’s permission. It explains what Form N510 is and the situations in which it must be used. It then outlines the sections to complete, which differ depending on the jurisdiction where service will take place. It also highlights key considerations when preparing Form N510 and sets out the consequences of completing it incorrectly. Finally, it confirms when the form must be filed and served, and what happens if this does not occur. For guidance on whether the court’s permission is needed to serve a claim form outside England and Wales, see Practice Note: Cross-border service—is permission required to serve a defendant who is outside England and...

This Practice Note explains the key considerations for a buyer and a seller where a freehold or leasehold property is sold subject to occupational leases and there are rent arrears under those leases. Its focus is commercial property, with brief acknowledgement of relevant residential points. It does not address arrears arising under a headlease; see instead: Due diligence—head lease rent arrears—checklist. For practical guidance and drafting pointers for buyers on common arrears clauses, see Practice Note: Buyer’s contract negotiation guide—arrears. When acquiring a property that is subject to leases, it is vital to determine whether there will (or might) be rent arrears under those leases as at the date of completion. If so, the parties must decide: who bears the risk of non-payment of the arrears, and who is responsible for attempting to recover them Risk of...

Regulated tenancies Regulated tenancies—often referred to as protected, statutory or fair rent tenancies—arise under the Rent Act 1977 ( RA 1977) and constituted the chief private residential tenancy type until 15 January 1989. Where a tenancy was granted on or after 15 January 1989, when the Housing Act 1988 took effect and assured tenancies became the prevailing private residential model, inclusion within RA 1977 is possible only in narrowly defined situations. Nevertheless, a considerable proportion of protected tenancies persists and, if they are not properly recognised, a purchaser acquiring property subject to a regulated tenancy may pay too much and be unable to achieve vacant possession. RA 1977 tenancies carry very strong security; in the majority of cases the landlord must await the tenant’s departure, though the parties may sometimes negotiate a surrender in exchange for a financial incentive. Be aware that, although several...

This practice note examines property disputes arising from negligence and trespass. For statutory liability connected to property and the law of nuisance, see Practice Notes: Property disputes in Scotland (delictual and statutory) and Property disputes in Scotland—common law and statutory nuisance. Negligence Negligence claims in property contexts frequently stem from inadequate property advice given by a professional—such as an architect, surveyor or conveyancer—or from substandard construction work undertaken by a contractor, for example a builder, roofer or plumber. Negligence creates liability for loss or injury caused by carelessness or a failure to exercise reasonable competence by the relevant professional or contractor. What is the test for negligence? Negligence is assessed by a three-part test considering whether: a duty of care exists that duty has been breached the breach of duty brought about the loss or harm complained of See further: The rise of the concept of duty of...

A pilot trust is a lifetime settlement created with a token amount (often a nominal cash sum such as £10) and it remains inactive until more money or assets are later added thereafter. Setting up a trust in this fashion is very common indeed. The starter sum brings the trust into being so it stands ready to receive the principal assets at an appropriate future time. Pilot trusts in practice A great many trusts begin life as pilot trusts. The core assets of the trust might be introduced very shortly after the pilot starts. For instance, an individual intending to place property into trust could first establish a pilot and then soon after move UK land to the trustees by an HM Land Registry transfer. Equally, some pilots may not be topped up for several years and will largely lie dormant in the interim period. As...

This Practice Note examines the various categories of contractual damages available for non-financial (non-pecuniary) loss—namely punitive damages, damages for loss of enjoyment and loss of amenity, restitutionary damages, and negotiating damages (previously referred to as ‘ Wrotham Park damages’). For guidance on contractual damages in general, see Practice Note: Contractual damages—general principles. For damages addressing financial (pecuniary) loss for breach of contract, see Practice Note: Contractual damages—pecuniary losses. Contractual damages—categories of non-pecuniary loss Damages for non-pecuniary loss are granted only in exceptional circumstances, as such awards run counter to the basic principle that damages are strictly compensatory. They include: punitive damages damages for loss of enjoyment and loss of amenity restitutionary damages negotiating damages Non-pecuniary loss—punitive damages Punitive damages are awarded where the defaulting party’s conduct is so egregious that punishment is warranted. These awards are rare in tort and are almost...

This Practice Note considers non-compete clauses in commercial agreements and the effect of the Competition Act 1998 ( Vertical Agreements Block Exemption) Order 2022, SI 2022/516 (the UK VABEO) Non-compete clauses are contractual commitments that curb a party from competing with another’s business. They appear in numerous guises and are described using varied terminology; they may equally be labelled exclusivity clauses, exclusivity provisions, non-poaching clauses, non-solicitation clauses, restraint of trade clauses, or restrictive covenants. This Practice Note examines the impact of the UK VABEO and reviews the following familiar types of non-compete restriction found in standard vertical commercial arrangements where the parties are neither actual nor potential rivals: non-compete clauses in distribution agreements etc non-compete clauses in consultancy agreements exclusive supply obligations exclusive purchase obligations minimum spend...

This Practice Note explores circumstances in which a party hiring an independent contractor may owe non-delegable duties or be fixed with vicarious liability in tort for the contractor’s acts or omissions. Remaining liable for acts and omissions of contractors Commercial organisations frequently outsource obligations or services owed to third parties to contractors. While this can be done to a degree, the engaging party may still be responsible for the acts and omissions of those contractors. Such responsibility may arise through contractual liability, the law of agency, vicarious liability or non-delegable duties. Accordingly, when appointing independent contractors, it is essential to understand any continuing exposure so as to advise on risk, caps and exclusions of liability, and insurance. This Practice Note concentrates specifically on vicarious liability and non-delegable duties in the context of engaging independent contractors. The position in...

This Practice Note outlines the various legal foundations of consumer protection concerning dangerous or defective products. It examines civil actions—such as breach of contract, negligence and breach of statutory duty—together with criminal liability and regulatory proceedings. For a summary of the product liability material, see: Product liability—overview. Introduction Product incidents typically fall into two groups: those where using the product creates a risk of harm (‘dangerous products’ or ‘unsafe products’), and those where the product fails to operate as intended (‘defective products’) In either scenario, a recall or other corrective measure may be necessary to safeguard the brand, and affected consumers may pursue civil claims. That said, quality concerns on their own will seldom lead to criminal penalties for suppliers or manufacturers. For more details on recalls and corrective steps, see: Practice Note: Product safety notification and corrective actions Product...

What is an administrative receiver? The Insolvency Act 1986 ( IA 1986) provides that an administrative receiver is: a receiver or manager of all, or substantially all, of a company’s property, appointed by or on behalf of the holders of any company debentures secured by a charge which, when created, was a floating charge, or by that charge together with one or more other securities; or a person who would meet that description but for the appointment of another individual as the receiver of part of the company’s property Powers An administrative receiver holds all powers granted by the instrument under which they were appointed and, so far as not inconsistent with that instrument, those specific powers set out in Schedule 1 of the Insolvency Act 1986. Anyone dealing with an administrative receiver in good faith and for value need not enquire whether they are acting within the scope of their...

This Practice Note reviews the various articles contained in Regulation ( EU) 1215/2012, Brussels I (recast) that address the domicile of claimant and defendant, and explains how the provisions operate. Under Article 4 of Regulation ( EU) 1215/2012, Brussels I (recast), the general rule is that a defendant should be sued in the courts of their domicile where they are domiciled in an EU Member State, whereas Article 63 of that Regulation identifies the jurisdiction for proceedings against a company or corporation. Where the claimant is the weaker party, eg consumer or insurance matters, special rules permit the claimant to bring proceedings in their own domicile rather than that of the defendant. For defendants not domiciled in an EU Member State, Article 6 applies. Domicile of the claimant When assessing jurisdiction, the claimant’s domicile is of relevance in a limited set of...

Readily convertible assets and PAYE If an employee is given a right to acquire shares (an option) under a plan that is not tax favoured, a potential income tax liability can arise on exercise, assignment or release under sections 471–484 of the Income Tax ( Earnings and Pensions) Act 2003 ( ITEPA 2003). Where the shares are not readily convertible assets ( RCAs), any income tax due is handled through the UK self-assessment system. Pay As You Earn ( PAYE) is the method by which employers (and other payers) must withhold income tax and account for it to HMRC on certain payments of: employment income pension income social security income Generally, non-cash payments fall outside PAYE. An important exception is where payments are in, or treated as being in, the form of RCAs, which brings them within PAYE. Put simply, RCAs are treated in the same way as salary paid in cash...

ARCHIVED: This Practice Note is archived and not maintained. Court of Appeal—continuing breach and concurrent causes of action The Court of Appeal examined whether a continuing breach could operate as a concurrent cause of action when allocating loss under an indemnity in a share sale agreement that made the seller responsible for losses arising from services performed before the transfer date. The question was whether the pre-transfer negligence amounted to a breach of duty that persisted day by day after the transfer, so that a new cause of action accrued each day, creating a concurrent claim alongside the indemnified breach which, following EE Caledonia, would bar the appellant from relying on the indemnity. By a majority, and departing from the first instance decision, the court held there was no continuing breach, hence no concurrent cause of action, and the indemnity could be relied upon after the...

What does this Practice Note cover? This Practice Note explains what each component of the 2014 ISDA Credit Derivatives Definitions addresses. The background to the 2014 ISDA Credit Derivatives Definitions In 1999, the inaugural set of credit derivatives definitions appeared, followed in 2003 by the 2003 ISDA Credit Derivative Definitions (the 2003 Definitions). ISDA then released the 'big bang protocol' in March 2009, swiftly followed in June by the 'small bang protocol'. Among other changes, these protocols hard-wired the concept of auction settlement (see Practice Note: Credit derivatives—settlement procedures— Auction settlement) into the 2003 Definitions. Market participants wishing those protocols to govern their trades were required to adhere to the big bang and/or small bang protocols, after which the new provisions contained in them applied to certain categories of credit derivative transactions (termed ' Protocol Covered Transactions' in the protocols). In October 2014, the 2014 ISDA Credit...

2012: Key Restructuring & Insolvency cases [ Archived] This Practice Note has been archived and is no longer maintained. Parties/citation(s) Judgment date Subject Lexis®PSL analysis Appleyard v Wewelwala [2012] EWHC 3302 ( Ch), [2012] All ER ( D) 285 ( Nov); 23 November 2012; Bankruptcy expenses; The gap in a trustee in bankruptcy’s expenses— Appleyard v Wewelwala Wright Hassall LLP v Morris (administrator of Marketbalance Ltd and another) [2012] EWCA Civ 1472, [2012] All ER ( D) 198 ( Nov); 15 November 2012; Administrator’s liability under a conditional fee agreement; Administrator personally liable for solicitors’ costs under a conditional fee agreement Neumans LLP v Andronikou and others Re Portsmouth City Football Club Ltd (in liquidation) [2012] EWHC 3088 ( Ch), [2012] All ER ( D) 34 ( Nov); 2 November 2012; Solicitors’ costs in winding-up proceedings; How can solicitors ensure payment when acting on...

Issue Details Convention on Third Party Liability in the Field of Nuclear Energy ( Paris Convention) Parties: 16 parties Revisions: 1963 Convention Supplementary to the Paris Convention ( Brussels Supplementary Convention — entered into force on 4 December 1974) 1964 Protocol — entered into force on 1 April 1968 1982 Protocol — entered into force on 7 October 1988 2004 Protocol — 1 January 2022 Location: Paris Adopted: 29 July 1960 Came into force: 1 April 1968 Subject: Nuclear liability What is the international liability regime for nuclear damage? Civil liability for nuclear harm is defined by four principal instruments: the 1960 Paris Convention on Third Party Liability in the Field of...

This Practice Note sets out the rules governing the registration and transfer of domain names within the .uk country code Top Level Domain (cc TLD). For further information on domain names in general, see: Domain names—overview. This Practice Note does not address the transfer of .com or other generic Top Level Domains (g TLDs); information on those can instead be found in Practice Note: Domain name transfer (.com). Background to the .uk cc TLD Top-level domains ( TLDs) represent the highest layer of the domain name system ( DNS). The DNS is, in essence, the internet’s phone book, translating domain names into IP addresses and enabling internet users to reach websites and other internet resources. The purpose of a domain ending is to simplify the classification of all registered addresses inside the DNS. The Internet Corporation for Assigned Names and Numbers ( ICANN) assigns country...

To compel compliance with an order directing the handover or transfer of identified goods, a writ of delivery ( High Court) or a warrant of delivery ( Family Court or County Court) can be utilised for enforcement. A writ of delivery is addressed to a High Court enforcement officer; a warrant of delivery is issued to a County Court bailiff. If a party holds a judgment or order requiring delivery of goods and the respondent has not complied, enforcement may proceed by writ or warrant of delivery pursuant to the Civil Procedure Rules 1998 ( CPR), SI 1998/3132, r 83.14 ( High Court) or CPR 83.23–83.25 ( Family Court) (as applied by the Family Procedure Rules 2010 ( FPR 2010), SI 2010/2955, 33.1(2)), save where (for the Family Court) another rule or Act provides otherwise. Such a writ or warrant empowers the...

Employers may, at times, make loans available to directors or staff, either as part of the overall remuneration package or on particular occasions to assist with major outlays. This Practice Note looks in detail at the income tax and National Insurance contributions ( NICs) consequences where the lender later writes off or releases such borrowing. It sets out the specific provisions within the benefits code in ITEPA 2003, Part 3 that govern ‘employment‑related loans’. For what amounts to an employment‑related loan, see Practice Note: Employment‑related loans—defined. Alongside the write‑off charges outlined below, if an employee or director (or a relative of either) receives an employment‑related loan that counts as a taxable cheap loan, there is an annual income tax and Class 1A NICs charge on the cash equivalent of the benefit enjoyed by the employee or director (subject to certain...

This Practice Note outlines the forthcoming duty on employers to provide each worker with a written statement confirming their right to join a trade union. The obligation is to be introduced by section 58 of the Employment Rights Act 2025 ( ERA 2025). Regulations will be made to bring section 58 into force, with additional details of the requirement to be set out in those regulations. A consultation on the duty ran from 23 October to 18 December 2025. The consultation indicated the government’s intention for commencement by October 2026. For more, see Practice Notes: Employment Rights Act 2025—tracker and Consultation tracker— Employment. The basic right to a statement ERA 2025, s 58 provides for an amendment to the Trade Union and Labour Relations ( Consolidation) Act 1992 ( TULR( C) A 1992) by inserting a new section 136A. This amendment will require that, when a...