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I am curious as to the role of the MoD in this: clearly they were entitled to refer the issue to the SRA to reflect their concerns at the conduct of the claimant's solicitors, but a complaint by a party to an action on conduct of the other party ought to be treated with circumspection, for obvious reasons. The account of the proceedings as reported suggested anything but and I note that the issue of MoD responsibility was raised during the hearing. It will be interesting to see whether there is anything in the judgment when published.
I also cannot see how this suggests any additional powers are required by the SRA -they took the case to the SDT and it was thrown out: if anything it may be worth checking whether the SRA action was excessive, especially given the costs.