SQE1 - Solicitors Qualifying Examination Part 1 Dispute Resolution Questions and Answers

Question 1

A claimant issues a claim form for a simple breach of contract valued at £18,000 against a defendant based in England. After the defendant files a defence, the court provisionally decides on the appropriate track. Which track is the court most likely to allocate this claim to, and what is the primary factor influencing this decision?

Accepted Answer

The Fast Track, primarily due to the financial value of the claim.

Answer

According to the Civil Procedure Rules (CPR) Part 26, the Fast Track is the normal track for claims with a financial value between £10,000 and £25,000, provided the trial is unlikely to last for more than one day and oral expert evidence is limited. The primary factor for allocation is the financial value of the claim. Since the claim is valued at £18,000 and is described as simple, it falls squarely within the Fast Track criteria. The Small Claims Track is for claims up to £10,000, and the Multi-Track is for claims over £25,000 or those which are particularly complex. The Intermediate Track is a newer track for certain claims valued between £25,000 and £100,000.

Question 2

A solicitor is advising a client who has received a 'Letter of Claim' under the Pre-Action Protocol for Debt Claims. The client is an individual who disputes the amount owed to a large retail company. According to the protocol, what is the minimum period the client must be given to respond to the Letter of Claim before the creditor can start court proceedings?

Accepted Answer

30 days

Answer

The Pre-Action Protocol for Debt Claims, which applies to businesses (including sole traders) claiming payment of a debt from an individual, states that the debtor must be given a minimum of 30 days to respond to the Letter of Claim. The creditor should not start court proceedings until at least 30 days from the date of the letter. This period allows the debtor to seek advice, gather information, and complete the Reply Form.

Question 3

In which of the following circumstances would a statement made during 'without prejudice' negotiations be admissible in court proceedings?

Accepted Answer

To prove that a binding settlement agreement was reached during the negotiations.

Answer

The 'without prejudice' rule prevents statements made in a genuine attempt to settle a dispute from being put before the court as evidence of admissions. However, there are established exceptions to this rule. One key exception is where the negotiations lead to a concluded settlement agreement, and a dispute arises about whether an agreement was reached or what its terms were. In that situation, the without prejudice communications can be admitted to prove the existence and terms of the settlement contract.

Question 4

A claimant's solicitor is preparing to apply for summary judgment under CPR Part 24 against a defendant who has filed a weak defence. What are the two grounds the court must be satisfied of to grant summary judgment?

Accepted Answer

The defendant has no real prospect of successfully defending the claim, and there is no other compelling reason why the case should be disposed of at a trial.

Answer

Under CPR 24.3, the court may grant summary judgment if it considers that the respondent (in this case, the defendant) has no real prospect of succeeding on the claim or defence, and there is no other compelling reason why the case or issue should be disposed of at a trial. Both of these limbs of the test must be satisfied for the application to be successful.

Question 5

A claimant in a personal injury claim makes a valid CPR Part 36 offer to settle for £50,000. The defendant does not accept the offer. The case proceeds to trial and the judge awards the claimant £60,000 in damages. Which of the following consequences is the court most likely to order, unless it considers it unjust to do so?

Accepted Answer

The defendant pays the claimant's costs on the standard basis up to the expiry of the relevant period for the offer, and on the indemnity basis thereafter, plus enhanced interest on damages and an additional amount.

Answer

Where a claimant obtains a judgment that is at least as advantageous as their own Part 36 offer, CPR 36.17 provides for specific costs consequences. The court will, unless it considers it unjust, order the defendant to pay: the claimant's costs on the standard basis up to the end of the 'relevant period' (usually 21 days after the offer was made); costs on the indemnity basis from that date; enhanced interest on the damages (at a rate not exceeding 10% above base rate); and an additional amount of up to £75,000.

SQE1 Practice Test

SQE1 Practice Test

SQE1 - Solicitors Qualifying Examination Part 1 Dispute Resolution Questions and Answers