What is the latest update from the Civil Court?
Almost two thirds of hearings conducted in the Civil Court will occur in person over the next few months as the Civil Court sees an influx in cases.
The Courts
In the Business & Property Courts, cases have been dealt with consistently since the start of the pandemic, except for trials that run for longer than 10 days in the Commercial & Admiralty Court. The Queen’s Bench Division and Administrative Court are also running as normal. If your case is listed for one of these courts, you do not need to be concerned that your case may take longer than anticipated, with conclusions still being reach at the normal rate.
Hearings
Since the start of the pandemic, most hearings have been conducted online through various platforms such as Skype for Business and Cloud Video Platform. The courts are of the view that remote hearings tend to take longer than those that are held in person. As a result, if your case is due to be held in person, the case may be heard in less time. HM Courts and Tribunals Service stated that:
“Wherever possible we will look to facilitate face-to-face hearings, but our expectation is that remote hearings will continue to play an important role for the foreseeable future, given that social distancing will continue to limit courtroom capacity compared to pre-Covid levels.”
More courtrooms have become available since the start of the pandemic, resulting in more facilities for cases to be heard in person, which will have the aim of helping to rid of the backlog of cases, along with remote hearings being conducted too, which is a welcome step forward.
Approximately 300 additional support staff will be employed for remote hearings before the end of 2020, enabling better service with remote hearings. The Government has decided that some civil judges will have the option to extend operating hours for cases to be held in the evenings and on weekends too, which may be most suitable for small and fast-track claims, resulting in a potentially faster outcome. The efficiency of all the new measures are being monitored and changes are being implemented, such as increasing the capacity of the Small Claims Mediation Service.
Small Claims Mediation Service
With claims of a lower value, a high proportion of cases successfully settle outside of court, therefore, if you have a small claim, the mediation service may be suitable for your case. Mediation involves a trained impartial third party, with the parties to the case discuss the dispute with the assistance of the third party, aiming to reach a settlement. Now with the increased capacity, it may make the mediation service more accessible, meaning that an agreement can be reached more swiftly rather than waiting for the matter proceed to a hearing.
The courts have stated that:
“We aim to increase capacity to accommodate 90% of parties who want mediation, rather than the current 40%. We are recruiting additional mediators and restructuring ways of working to achieve this.”
This is a positive shift for those with small and fast-track claims where legal costs ought to be kept to a minimum. Settling by mediation removes the need for trial costs, amongst other costs, and has additional benefits such as the matter being dealt with more amicably.
Related FAQs
- Yes, and this includes furloughed employees under the Coronavirus Job Retention Scheme.
- Employers must continue to assess their new employees or newly eligible existing employees and enrol them where required, but can make use of the statutory postponement procedure which allows them to delay for up to three months the assessment of new employees for the purpose of enrolment (see further details here on the Pensions Regulator’s website). Declarations of compliance for new employers must still be completed in the normal way.
- Postponement cannot be used for re-enrolment. The Regulator recommends employers use the re-enrolment date tool on the Regulator’s website to choose a date up to three months after the third anniversary of enrolment to assess staff for re-enrolment. Further information about employers’ obligations about reenrolment from the Pensions Regulator can be found here. Re-declarations of compliance for new employers must still be completed in the normal way.
We recommend that ongoing support is provided to all MHFA’s beyond completion of the MHFA training. It is necessary to do refresher training (approx. every 3 years) and ideally ongoing ‘continued professional development’ should be provided as well as regular opportunities for debriefing / seeking support. One way of supporting your MHFAs in the workplace is by creating a buddy system amongst the MHFAs. That way the individuals carrying out the role of MHFAs have a support structure in place amongst themselves. All trained MHFAs can also reach out to management to discuss any concerns they have or to seek any further support they need.
The Coronavirus Business Interruption Loan Scheme (“CBILS“) is open for applications to provide small businesses with a loan of up to £5m to assist with the Covid-19 outbreak. The Scheme is aimed at businesses who are experiencing lost or deferred revenues, and who otherwise would be denied support from lenders, to be supported by a Government backed guarantee. The Scheme will initially run for six months with the possibility to be extended where required, so businesses should only approach a lender under the Scheme as and when they require assistance.
Employees are generally permitted to take holidays during furlough. However, Government guidance has been updated to state that “Employees should not be placed on furlough for a period simply because they are on holiday for that period.” If a period of furlough happens to coincide with an employee’s holiday then you should ensure that there are business grounds to support furlough being used in that instance so that it isn’t just being used as a means to fund holiday utilisation.
If the debts owed to you pre-date Covid-19 and your debtor seemed unable to pay well before the Covid-19 pandemic took place, it is entirely possible that you will be able to present a petition on the grounds that the debtor would have been unable to pay its debts even if the Covid-19 had no effect on its financial position. We do not yet have any reliable precedent as to how the Courts are likely to deal with such cases. Whether you are likely to succeed will depend on the exact circumstances of the debt and your debtor. There has been one case decided in August 2020 where the Court concluded that Covid-19 did not have a financial effect upon the debtor and that the circumstances which gave rise to the petition had arisen long before Covid and would have occurred in any event. A winding up order was made in that case. What we do know about the court’s approach is that the purpose of the Act is to allow viable companies to trade through the current times and the Court is likely to set the bar high.
Please contact us if there a debt you would like to discuss. Even if presenting a winding up petition is not available for now, there may still be other forms of legal proceedings that you can use to collect money owed to you, like county court proceedings.