Practice

Settlement of action - parties agreement after hearing concluded but before judgment - duty to inform courtHFC Bank Plc v HSBC Bank Plc Court of Appeal: Nourse, Sedley and Judge LJJ: 10 February 2000

The claimant, a bank, brought proceedings against the defendant for passing off.

Its action was dismissed by a judge in the Chancery Division and it appealed.

After hearing argument, the Court of Appeal announced that judgment would be reserved.

On 7 February counsel's clerks were told that judgment would be given on 10 February.

However, on 3 February the parties had a meeting in Chicago and reached a compromise.

On 8 February the court was told that the parties wished the appeal to be dismissed.Andrew Waugh QC, Colin Birss and Geoffrey Pritchard (instructed by Simmons & Simmons) for the claimants.

Peter Prestcott QC, John Hornby, solicitor advocate, and James Abrahams (instructed by Clifford Chance) for the defendants.Held, making a consent order dismissing the appeal, that parties were always encouraged to settle proceedings, even at a late stage; that the concern of the court was that no information had been given regarding the settlement until after notice of judgment had been given; that it was the duty, not only of professional advisers, but of the parties themselves to inform the court immediately they became aware of any development which might make it unnecessary for judgment to be delivered; and that the foundation of that duty was not the personal inconvenience to members of the court, acute though that might be, but the requirement that both at first instance and in the Court of Appeal court resources should be properly and efficiently deployed.