Find out here if your local court is staying claims

[chauvesouris]

I've just received notice of a stay from Habershon DJ at Wandsworth cc. It's upon the court's own motion and is "pending a decision in the test case".

[chauvesouris]

Assuming the judgment goes in our favour and there is no appeal, the situation is clear: the banks will be obliged to refund any charges they have taken unlawfully. There won't be any need to go through the courts - the only time this will be necessary is if there is some disagreement about the amount you are claiming.

 

If the banks appeal then the situation may become more complicated. It is not clear how the county courts will respond and it is likely that the FSA will allow the banks to keep claims like yours on hold. It isn't fair, but the FSA clearly leans towards the interests of the banks. In my case, now in Worthing, the judge has ordered that we let him know whether we've come to an agreement within 28 days of judgment in the High Court case.

 

The only suggestion I could offer is that you sit tight - starting legal action at this stage could be seen as unnecessary litigation and so you would have trouble getting your costs back.

[chauvesouris]

That would be true if it wasn't for s32 of the Limitation Act and the interpretation of that section in Kleinwort Benson v Lincoln [1998] All ER (D) 518.

 

Section 32 allows for the postponement of the limitation period in case of mistake (and fraud and concealment). The period of six years doesn't start until the mistake is discovered - and in law it has not yet been discovered. When the court rules that the banks have been acting unlawfully the clock will start ticking. The House of Lords made this quite clear in their judgment - the cause of action might be extended for an indefinite amount of time.

 

The idea that, by filing your claim now, you are progressing things for when judgment is handed down is, it seems to me, flawed: if we win then you won't need the court (unless there is a dispute about quantum - at which point you would start proceedings). Anybody with an ongoing case will have to contact the bank and get them to settle. If the bank refuses to settle then one will have to apply to the court for summary judgment (part 24 CPR), or wait for a full hearing. And if we lose... .

 

There is some merit in the idea of trying to get the bank to agree to the amount they will give you if they lose - that might get you ahead when things start moving again.

 

I suppose the argument that you had started proceedings to avoid being time-barred might be persuasive if the bank were to refuse to pay your costs.

 

I still stand by my advice - there is no advantage to be gained from applying now but there is a high risk that your application fee will be wasted.