Binns v Firstplus Financial Group Plc [2013] EWHC 2436 (QB) (24 July 2013)

Binns v Firstplus Financial Group Plc [2013] EWHC 2436 (QB) (24 July 2013)

Where a claimant has been offered full redress for their substantive claim through an effective ADR scheme, and the only remaining advantage sought through litigation is the recovery of legal costs, the court should strike out the claim as disclosing no reasonable grounds and as an abuse of process. Costs are adjunctive and not intrinsic to the claim; the court's resources should not be used to pursue litigation in such circumstances.

Citation
[2013] EWHC 2436 (QB)
Parties
Respondent (claimant): Christopher and Claire Binns; Appellant (defendant): Firstplus Financial Group PLC
Jurisdiction
England and Wales
Judgment Date
24 July 2013
Procedural Posture
Civil Appeal / Appeal Against Refusal to Strike Out And/or Grant Summary Judgment
Outcome
Appeal allowed; claim struck out in its entirety.
Legal Topics
Strike Out Applications, Summary Judgment, Abuse of Process, Alternative Dispute Resolution (adr), Payment Protection Insurance (ppi) Mis Selling, Consumer Credit Act 1974, Costs in Litigation
Civil Procedure Consumer Protection Financial Services Strike Out Applications Summary Judgment Abuse of Process Alternative Dispute Resolution (adr) Payment Protection Insurance (ppi) Mis Selling +2 more

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Parties

Christopher and Claire Binns

Respondent (claimant)

Firstplus Financial Group PLC

Appellant (defendant)

Procedural Posture

Civil Appeal / Appeal Against Refusal to Strike Out And/or Grant Summary Judgment

Legal Issues

  1. 1 Whether a county court claim should be struck out or summarily dismissed where full redress has been offered under an ADR scheme but not accepted by the claimant
  2. 2 Whether pursuit of litigation solely for the prospect of costs constitutes a reasonable ground for bringing a claim or is an abuse of process

Ratio Decidendi

Where a claimant has been offered full redress for their substantive claim through an effective ADR scheme, and the only remaining advantage sought through litigation is the recovery of legal costs, the court should strike out the claim as disclosing no reasonable grounds and as an abuse of process. Costs are adjunctive and not intrinsic to the claim; the court's resources should not be used to pursue litigation in such circumstances.

Court Disposition

Appeal allowed; claim struck out in its entirety.

Orders

  • The claim is struck out in its entirety.
  • The ADR offer under the FSA scheme remains open for acceptance and provides full redress to the claimant for the PPI claim.