Commencing a claim - Purpose, structure, and content of a Pa...

Learning Outcomes

This article explains the purpose, structure, and content of Part 20 claims within civil litigation under the Civil Procedure Rules (CPR), including:

• Distinctions between a defence with set-off, a counterclaim, and other additional claims under CPR Part 20, and when each is appropriate.
• Who may bring a Part 20 claim and against whom, including claims by any party against existing parties or non-parties.
• Rules on permission, timing, and drafting of counterclaims and other additional claims (including claims for contribution and indemnity).
• Time limits and service rules for Part 20 claims, including the different service periods for existing parties and new parties, and, where relevant, service out of the jurisdiction.
• Limitation rules relevant to additional claims, especially the two-year time limit for contribution claims under section 10 Limitation Act 1980, and how limitation for other additional claims aligns with the cause of action.
• Core elements of Part 20 pleadings, including the factual and legal basis, the relief sought (contribution/indemnity/other), and the correct alternative prayers.
• Responses to Part 20 claims, including defences, acknowledgments of service by new parties, default consequences, and common case management directions.
• Case management options and strategic considerations for joining third parties, avoiding multiplicity of proceedings, and ensuring proportionate conduct consistent with the overriding objective.

This knowledge is essential for applying the CPR effectively in practice and for answering SQE1 assessment questions.

SQE1 Syllabus

For SQE1, you are required to understand how additional claims are managed within existing proceedings, with a focus on the following syllabus points:

• The purpose and different types of Part 20 claims (counterclaims, claims for contribution or indemnity, claims against third parties).
• The procedure for commencing a Part 20 claim, including when court permission is required.
• The requirements for the form and content of a Part 20 claim form and accompanying documents.
• The time limits associated with issuing and serving Part 20 claims.
• The relationship between a Part 20 claim and the main claim.
• How parties respond to a Part 20 claim (e.g., defence to counterclaim).
• The effect of CPR 20 on case management (including whether to try the additional claim with the main claim or separately).
• Service on new parties (including service out of the jurisdiction under Part 6 and PD 6B) and the associated time limits.
• Limitation for contribution claims (section 10 Limitation Act 1980) and how limitation operates for other additional claims.
• Costs and tactical considerations where additional claims are raised late or risk jeopardising trial dates.

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. Which of the following Part 20 claims generally requires the court's permission if it is not filed at the same time as the Defence?
   1. A counterclaim against the claimant.
   2. A claim for contribution against an existing co-defendant.
   3. A claim against a new party (a third party).
   4. All Part 20 claims require permission whenever filed.
2. A defendant wishes to claim that a third party is liable for some or all of the damage claimed by the claimant. What type of Part 20 claim should the defendant consider making?
   1. Counterclaim.
   2. Claim for indemnity.
   3. Claim for contribution.
   4. Additional claim against a third party (seeking contribution or indemnity).

3. True or False? A Part 20 claim form must be served on the Part 20 defendant within 4 months of the date the main claim form was issued.

4. What is the primary purpose of allowing Part 20 claims under the CPR?
   1. To increase the complexity of litigation.
   2. To ensure all related disputes are resolved within the same proceedings for efficiency.
   3. To give defendants an automatic right to delay proceedings.
   4. To allow claimants to add unrelated claims easily.

Introduction

In civil litigation, the initial claim brought by the claimant against the defendant sets the primary scope of the dispute. However, related issues or liabilities involving other parties often arise. Part 20 of the Civil Procedure Rules (CPR) provides the mechanism for incorporating these related claims into the existing proceedings. This avoids the need for separate actions, which could lead to conflicting judgments, increased costs, and inefficient use of court resources. Understanding how to use and respond to Part 20 claims is therefore a fundamental aspect of civil procedure.

Key Term: Part 20 Claim
An additional claim made within existing court proceedings, other than a claim by a claimant against a defendant. This includes counterclaims, claims for contribution or indemnity between parties, and claims against non-parties (third parties).

Part 20 is not confined to defendants. Any party may bring an additional claim against any person (whether or not already a party) where appropriate. The overriding objective (CPR 1.1) guides the use of Part 20, ensuring that cases are dealt with justly and at proportionate cost. Allowing related claims to be tried together generally furthers this objective by saving time and expense, avoiding inconsistent findings, and enabling the court to make comprehensive case management directions.

Types of Part 20 Claim

There are several distinct types of claims that can be made under Part 20. For the SQE1 exam, you need to be able to identify and understand the key features of each.

Counterclaims

A counterclaim is a claim brought by a defendant against the claimant within the existing proceedings. It is essentially the defendant's own cause of action against the claimant.

Key Term: Counterclaim
A claim brought by a defendant against a claimant in response to the claimant's claim, which is included in the same proceedings.

A defendant can make a counterclaim against a claimant without the court's permission if it is filed with the defence (CPR 20.4(2)(a)). If the defendant wishes to make a counterclaim at any later stage, the court's permission is required (CPR 20.4(2)(b)). A counterclaim should be pleaded as if it were a standalone claim, with a clear statement of facts, legal basis, and remedy sought. Although often linked to the same transaction or events as the main claim, a counterclaim may also be distinct. Where the counterclaim introduces wholly unrelated matters that would unduly complicate or delay the trial, the court may exercise its case management powers to direct separate determination or even require separate proceedings if proportionate.

If a defendant needs to counterclaim against someone other than the claimant (for example, to bring in a non-party said to be liable to the defendant), they must apply for an order adding that person as an additional party (CPR 20.5). This is not called a “counterclaim” against a non-party in strict CPR terminology; rather, it is pursued as an additional claim under Part 20 and will usually require an application to add that person and directions for service.

Set-off and counterclaim are distinct. Set-off (legal or equitable) is a defence that reduces or extinguishes the claimant’s monetary claim based on cross-claims; a counterclaim is a separate claim for relief. Both can be deployed together in appropriate cases.

Worked Example 1.1

BuildCo Ltd (Claimant) sues Homeowner (Defendant) for £15,000 outstanding on an invoice for building an extension. Homeowner believes the work was defective and cost £5,000 to rectify. Homeowner also claims that BuildCo Ltd's workers damaged antique garden furniture worth £2,000 while on site. How should Homeowner respond?

Answer:
Homeowner should file a Defence denying liability for the £15,000 (or setting off the £5,000 rectification costs) and also include a Counterclaim for the £5,000 rectification costs and the £2,000 for the damaged furniture. Since it is filed with the Defence, no court permission is needed for the Counterclaim.

Claims for Contribution or Indemnity

A defendant who is sued may believe that another person is partly or wholly liable for the claimant's claim. Part 20 allows the defendant to claim a contribution or indemnity from that other person.

Key Term: Contribution
A right for one person liable for damage to recover from another person who is also liable for the same damage, requiring the second person to pay a share of the damages. (Governed primarily by the Civil Liability (Contribution) Act 1978; the amount is such as is just and equitable having regard to the respective responsibility.)

Key Term: Indemnity
A right for one person to recover the full amount of their liability from another person, often arising from a contractual indemnity or a specific legal relationship.

• Against an existing party: A defendant can bring a Part 20 claim for contribution or indemnity against a person who is already a party (e.g., a co-defendant). No permission is required if the additional claim is issued before or at the same time as the defence is filed. If raised later, permission is required (CPR 20.7(3)).
• Against a non-party: Where the proposed contributor/indemnifier is not already a party, the defendant may make an additional claim against that person under Part 20. As with other additional claims, permission is not required if the additional claim is issued before or at the same time as the defence; otherwise, permission is required.

Two limitation points are critical in practice:

• The cause of action dictates limitation for most additional claims (e.g., six years for simple contract).
• Claims for contribution under the Civil Liability (Contribution) Act 1978 have a special two-year limitation under section 10 Limitation Act 1980, running from the date judgment is given, or the date of a binding settlement or award determining liability. This operates irrespective of the limitation for the original claim.

When pleading a contribution claim, it is common and sensible to plead in the alternative for contribution “in such proportion as the court considers just and equitable” or, if a contractual indemnity applies, to seek an indemnity in full and in the alternative contribution.

Claims Against Third Parties

A defendant may believe that a person not currently involved in the proceedings should be brought in because that person is responsible (in whole or part) for the claimant's claim against the defendant. This is done by making an 'additional claim' against that person, known as a third party.

Key Term: Third Party
A person who is not originally a claimant or defendant in the proceedings but is brought into the claim by a party through a Part 20 additional claim.

A defendant needs the court's permission to issue a Part 20 claim against a third party unless the claim is issued before or at the same time as the defence is filed (CPR 20.7(3)). The court will consider factors such as the stage of the main claim, the need to preserve the trial date, whether the additional claim has a real prospect of success, and overall proportionality when deciding whether to grant permission for a late additional claim.

A third party who is joined becomes a party to the extent of the additional claim. The court may direct whether and how that person participates in the trial of the main claim (including whether they may contest the defendant’s liability to the claimant as part of the issues in the additional claim), and may order separate determination of the additional claim if that is just and proportionate.

Worked Example 1.2

CafeSupplies Ltd (Claimant) sues Restaurant Ltd (Defendant) for supplying faulty coffee machines. Restaurant Ltd believes the fault lies with EspressoTech (a separate company) who manufactured the machines' heating elements. EspressoTech is not currently a party. Restaurant Ltd has just filed its Defence. Can Restaurant Ltd bring EspressoTech into the proceedings?

Answer:
Yes, but Restaurant Ltd will now need the court's permission to issue a Part 20 claim against EspressoTech as a Third Party. This is because the claim against the Third Party was not issued before or at the same time as the Defence was filed. Restaurant Ltd would typically seek contribution (or, if a contractual indemnity exists, an indemnity) for any liability and associated costs.

Worked Example 1.3

Insurer pays a claimant’s settlement against Builder A. One year later, Builder A wants a contribution from Subcontractor B, whose defective work was the true cause. Is Builder A still in time?

Answer:
Probably yes. A claim for contribution under the Civil Liability (Contribution) Act 1978 must be brought within two years from the date the right to contribution accrued (usually the date of judgment, award, or binding settlement fixing liability) under section 10 Limitation Act 1980. If filed within two years of the settlement that fixed A’s liability, the additional claim is in time.

Worked Example 1.4

Claimant sues Main Contractor (D1) in contract. Claimant also has a direct contractual indemnity from the Project Manager (PM) relating to the same loss but did not sue PM initially. May the Claimant use Part 20 to claim an indemnity from PM in the same proceedings?

Answer:
Yes. Any party may bring an additional claim under Part 20 (it is not limited to defendants). The Claimant can seek permission (if not issued before/with D1’s defence) to add PM by additional claim for an indemnity arising under the direct contract, enabling all related liabilities to be determined together.

Worked Example 1.5

Defendant wants to join a third party domiciled outside England and Wales. What additional steps arise?

Answer:
Joining and serving a non-party outside the jurisdiction is an additional claim under Part 20 and also engages service-out rules in Part 6. The defendant will generally need permission for the additional claim if not issued before or with the defence (CPR 20.7(3)) and separate permission to serve out or a relevant gateway under PD 6B. Time for service is extended to six months from issue for service outside the UK.

Commencing a Part 20 Claim: Procedure

The procedure for commencing a Part 20 claim depends on whether court permission is required, the identity of the proposed defendant (existing party or non-party), and the stage of the main claim.

Commencing Without Permission

As noted above, certain Part 20 claims (counterclaims against the claimant, and additional claims including contribution/indemnity against any person) do not require permission if the additional claim is issued before or at the same time as the defence (CPR 20.7(3)).

The procedure typically involves:

• Drafting the additional claim. A counterclaim is usually set out following the defence. Other additional claims are issued by additional claim form (Form N211), with separately pleaded particulars where necessary. Pleadings should state the factual and legal basis, the causal link to any liability, and the relief sought (e.g., “indemnity” or “such contribution as the court considers just and equitable,” interest, and costs).
• Filing the additional claim with the court at the same time as the defence (for additional claims other than a defence-based set-off). For a counterclaim against the claimant, include it in the same document as the defence.
• Serving the additional claim in accordance with CPR 20.8–20.9 and Part 6 (see Service, below). Where served on an existing party, the court expects prompt service and may require that it be served when the defence is served or within 14 days of issue of the additional claim. Where served on a non-party, service is governed by the standard Part 7 time periods for claim forms (see below).

Commencing With Permission

Where court permission is required (for example, an additional claim against a third party issued after the defence; or any additional claim issued later in the timetable), the Part 20 claimant must apply to the court.

The procedure involves:

• An application under CPR Part 23, supported by evidence (usually a witness statement) exhibiting the draft additional claim (e.g., draft N211 and particulars). The evidence should explain the nature of the additional claim, its connection to the main claim, the reason for the timing (and any delay), and why case management and proportionality favour determination within the same proceedings.
• Service of the application on all existing parties (and where directed, on the proposed third party).
• The court will decide permission having regard to the overriding objective, any impact on existing directions and trial date, the arguability of the additional claim, and the need to avoid multiple proceedings. If permission is granted, the court will give directions for filing and service of the additional claim and for the participation of the additional party in the proceedings.

A defendant who wishes to counterclaim against a person other than the claimant must also seek an order adding that person as a party (CPR 20.5). The court can combine the addition of the new party with permission for the additional claim and provide consequential directions.

Service

Service of the Part 20 claim must comply with CPR Part 6 and the specific rules in CPR 20.8–20.9 about timing and accompanying documents.

• Service on existing parties: A Part 20 claim against an existing party must be served at that party’s address for service. The additional claim should be served as soon as practicable and, unless the court orders otherwise, no later than 14 days after issue (CPR 20.8(2)). The court may direct service to coincide with service of the defence if the additional claim is issued alongside it.
• Service on new third parties (non-parties): Service on a non-party is governed by the rules applicable to service of a claim form under Part 7. That means the additional claim form must be served within the period specified by CPR 7.5—generally within four months of the date the additional claim was issued if served within the jurisdiction, or six months if served out of the jurisdiction (CPR 20.9(1) applied with CPR 7.5, 6.33). Do not calculate this period by reference to the main claim form; it runs from the issue of the additional claim form.
• Documents to accompany service on a new party: The additional claim must be served with the appropriate response pack and copies of all relevant statements of case (claim form, particulars of claim, defence, and any orders or directions as the court directs). This ensures the new party understands the existing issues and can engage promptly.
• Service out of the jurisdiction: Where the additional claim is to be served outside England and Wales, permission or a service-out gateway is usually required (PD 6B). Time for service is six months from issue (CPR 7.5), and the method must comply with Part 6 and any applicable international instruments.

The court retains a wide discretion to give case management directions on service and participation tailored to the justice of the case, including abridging or extending time, giving directions for deemed service by an alternative method, or separating the additional claim from the main claim to preserve a trial date.

Content of a Part 20 Claim

The document setting out the Part 20 claim (whether included in a defence and counterclaim or as particulars to an additional claim form) must clearly state:

• That it is a Part 20 claim (e.g., “Additional claim for contribution/indemnity under CPR Part 20”).
• The parties to the Part 20 claim (identifying any new parties to be added).
• A concise statement of the facts relied upon (linking the alleged responsibility of the Part 20 defendant to the claimant’s claim and explaining why the Part 20 defendant should contribute or indemnify).
• The legal basis for the claim (e.g., contractual indemnity; breach of contract; negligence; Civil Liability (Contribution) Act 1978).
• The remedy sought (e.g., an indemnity; contribution in such share as the court considers just and equitable; damages on a standalone cause of action; interest; costs).
• Alternative relief: It is common to plead indemnity and, in the alternative, contribution, or contribution expressed both as a specific share and alternatively “such share as is just and equitable.”
• A statement of truth (CPR 22) signed by the party or their legal representative.

Drafting tips:

• Where relying on a contractual indemnity, plead the relevant contractual terms verbatim or exhibit the contract, identify the trigger for the indemnity, and link it to the loss.
• For contribution claims, identify the alleged blame/responsibility of the proposed contributor in terms consistent with the main issues; it is unnecessary to apportion percentages at the pleading stage, but it may assist case management to identify the principal respects in which the third party is allegedly at fault.
• Include a claim for interest where appropriate (CPR 16.4) and a costs prayer in the additional claim.

Responding to a Part 20 Claim

A party served with a Part 20 claim (the Part 20 defendant) must respond within the applicable time limits and by the appropriate procedure.

• Claimant served with a counterclaim: Must file a Defence to Counterclaim within 14 days of service of the counterclaim particulars, or within 28 days if an acknowledgment of service is filed (CPR 15.4, 15.5). Directions may specify different periods. Failure to respond may lead to default judgment on the counterclaim.
• Existing party served with an additional claim: Should acknowledge and file a defence in accordance with any direction or the standard Part 7 timetable (acknowledgment within 14 days; defence within 28 days from service of the particulars unless extended by agreement or order).
• Third party (new party) served with an additional claim: Must file an acknowledgment of service and/or defence within the standard time limits (14/28 days from service of the additional claim particulars), just as if served with a Part 7 claim. Failure to acknowledge or defend has serious consequences: they may be deemed to admit the Part 20 claim and will be bound by any judgment in the main action relevant to the Part 20 issues (CPR 20.9(2)–(3)). In addition, default judgment on the additional claim may be available.

A new third party may:

• Dispute the court’s jurisdiction under Part 11 (e.g., on service-out grounds).
• Apply to strike out or for summary judgment on the additional claim (Parts 3 and 24).
• Raise a defence on the merits and, where directed, put in issue the Part 20 claimant’s liability to the main claimant, to the extent appropriate for determining the additional claim.
• Bring their own additional claims (a “fourth party” claim) against others if justified, subject to the same permission and service rules.

The court has broad case management powers in relation to Part 20 claims. It may:

• Try the additional claim with the main claim, or order a separate trial or a stay of the additional claim until after liability on the main claim is determined.
• Direct the sequence of issues, witness and expert evidence, and disclosure to ensure proportionality and the efficient use of court resources.
• Adjust directions to preserve an existing trial date where possible and proportionate.

Worked Example 1.6

D1 is sued by C. D1 issues an additional claim seeking a contractual indemnity against Insurer X, a non-party, and serves it. Insurer X does nothing. What should D1 do?

Answer:
D1 should consider requesting judgment in default on the additional claim if appropriate (for example, where the indemnity obligation is clearly pleaded and the sum can be quantified), and ask the court to direct that Insurer X is bound by relevant findings in the main action. Independently, by virtue of CPR 20.9(2)–(3), Insurer X will be bound by any judgment or finding in the main action relevant to the additional claim.

Revision Tip

Part 20 provides procedural tools to manage related claims efficiently. Focus on identifying the type of Part 20 claim needed for a scenario, whether permission is required based on timing and the parties involved, and the basic consequences of making or failing to respond to a Part 20 claim. Do not overlook limitation (especially the two-year period for contribution claims under section 10 Limitation Act 1980), nor the different service periods for additional claims against existing parties (usually within 14 days of issue) and non-parties (the Part 7 four/six-month periods from issue of the additional claim).

Key Point Checklist

This article has covered the following key knowledge points:

• Part 20 claims allow additional claims (counterclaims, contribution/indemnity claims, third-party claims) to be brought within existing proceedings and may be made by any party against any person (party or non-party).
• The primary purpose is efficiency—resolving connected liabilities in one forum, avoiding inconsistent findings, and promoting proportionate case management.
• Counterclaims are brought by a defendant against a claimant and require permission if not filed with the defence; a counterclaim against someone other than the claimant requires an application to add that person.
• Claims for contribution or indemnity may be directed at existing parties or new third parties. Claims for contribution are governed by the Civil Liability (Contribution) Act 1978; limitation for contribution claims is two years under section 10 Limitation Act 1980 from the date liability is fixed by judgment or binding settlement.
• Additional claims against new third parties require permission if not issued before or with the defence (CPR 20.7(3)).
• Service rules: against existing parties the additional claim must be served promptly and usually within 14 days of issue (CPR 20.8(2)); against non-parties, the Part 7 service periods apply—generally four months from the date the additional claim is issued within England and Wales, or six months for service out (CPR 7.5 as applied by CPR 20.9(1)).
• Content requirements mirror Particulars of Claim: identify the factual and legal basis and the relief sought, and verify with a statement of truth. Plead indemnity and contribution in the alternative where appropriate.
• Parties served with a Part 20 claim must acknowledge and/or defend within the standard time limits or risk default consequences and being bound by relevant findings in the main action.
• The court may direct that the additional claim be tried with the main claim or separately, having regard to proportionality and preserving trial timetables.
• Tactical points: issue additional claims promptly; consider limitation for contribution; ensure the correct service window is observed; and, for out-of-jurisdiction parties, obtain the necessary service-out permission or gateway.

Key Terms and Concepts

• Part 20 Claim
• Counterclaim
• Contribution
• Indemnity
• Third Party