Consistency And Modernization ' Key Themes From The New Chancery Guide

• Published date: 29 August 2022
• Subject Matter: Corporate/Commercial Law, Litigation, Mediation & Arbitration, Insolvency/Bankruptcy/Re-structuring, Corporate and Company Law, Insolvency/Bankruptcy, Contracts and Commercial Law, Arbitration & Dispute Resolution
• Law Firm: Reed Smith (Worldwide)
• Author: Frances Furness, Ben Summerfield, Oliver Rawkins and Daniel G. Newbound

The English judiciary has published a major update to the Chancery guide covering procedural matters in the Chancery Division. This is an important jurisdiction for business disputes involving company structures, breach of fiduciary duty by directors, claims arising out of the insolvency of companies, intellectual property and complex professional negligence.

Importantly for litigants, the new guide provides a closer alignment between practice in the Chancery Division and Commercial Court, along with renewed emphasis on the use of technology. This reflects the agenda of senior judiciary to: (i) improve efficiency and consistency in process across the Business and Property Courts; and (ii) embed information technology as a key aspect of dispute resolution in English High Court litigation.

We summarize some of the key themes from the new guide below, focusing on issues of general application to commercial litigators. This is not intended as an exhaustive list - the Chancery Division has a broad remit and there may be changes in the guide which affect specialist lists (such as Competition, Trusts and Probate) but are beyond the scope of this article.

The need for alignment

In 2017 the Business and Property Courts (B&PC) were created as a single umbrella for the jurisdictions within the English court system dealing with litigation in business, finance and property matters. Within that umbrella there are different "courts" dealing with specific work types, the most significant jurisdictions being the Commercial Court and Chancery Division. Although both courts apply the Civil Procedure Rules as their main framework, they each have specific processes developed from deep historical roots and reflective of different work types, as embodied in their separate "court guides". This divergence in procedural practice within the B&PC causes potential internal inconsistency and difficulties for practitioners. For example, prior to the new guide the timescales for responding to an interim application might have subtle but important differences across the different jurisdictions within the B&PC.

Alignment with the Commercial Court guide?

The new Chancery guide should be seen as an important step towards aligning practices where it is appropriate to do so. Overall, it closes the gap in aspects of core procedure between Chancery and the Commercial Court. The following examples stand out:

• Style - The guide has been completely rewritten in a style similar to that used in the...