SQE1 Dispute Resolution: Complete Guide
Candidates frequently lose marks on SQE1 Dispute Resolution questions by confusing pre-action requirements with procedural time limits — examiners test the entire litigation timeline from pre-action conduct through to enforcement.
Dispute Resolution on SQE1 tests a critical skill: how to navigate the English civil litigation system. From advising a client to pursue or defend a claim, to understanding when a Part 36 offer should be accepted, to identifying the correct track for a case, this topic demands both breadth and depth. The Civil Procedure Rules (CPR) form the backbone, but the real test is whether you can apply these rules to complex, scenario-based questions.
Explore This Topic
- Pre-action Conduct and Protocols
- Interim Applications and Remedies
- Settlement and ADR
What Is Dispute Resolution?
Dispute Resolution, as tested on SQE1, focuses on the civil litigation process in England and Wales. It examines how solicitors advise clients on the most appropriate method of resolving a dispute, the procedural steps involved in bringing or defending a claim, and the professional and ethical obligations that arise at each stage. The subject draws heavily on the Civil Procedure Rules (CPR), relevant Practice Directions, and key case law governing court procedure.
Within the SQE1 exam, Dispute Resolution sits in FLK1 and is a topic that candidates must engage with carefully. It intersects with areas such as Contract Law, Tort, and Professional Conduct, making it a frequent vehicle for cross-topic questions. Understanding the procedural framework is essential because procedural mistakes can be as costly as substantive legal errors.
Core Areas Tested in SQE1
The following subtopics form the backbone of SQE1 Dispute Resolution questions. Each area carries significant exam weight and may appear in isolation or combined with other subjects.
Pre-action Conduct and Protocols
Pre-action protocols set out the steps parties should take before issuing proceedings. Candidates need to know the consequences of non-compliance and how the court exercises its discretion when parties have failed to follow prescribed steps. Key points: non-compliance does not prevent a claim from being issued, but the court will consider it when making costs orders.
Commencing Proceedings and Statements of Case
Issuing and serving a claim covers issuing and serving claim forms, drafting particulars of claim, defences and counterclaims, and the procedural time limits that apply at each stage. Exam questions commonly test limitation periods and the requirements for valid service. Know your limitation periods: six years for contract and tort, three years for personal injury, and the deemed service rules under CPR Part 6.
Responding to a Claim
Responding to a claim covers acknowledgment of service, defence, default judgment, and the grounds for setting aside a default judgment. The 14/28-day framework is critical and constantly tested. Missing these deadlines can result in catastrophic outcomes.
Case Management and Track Allocation
Track allocation determines which procedural rules apply—small claims (up to £10,000; £1,000 for PI), fast track (£10,000–£25,000), or multi-track (over £25,000). Candidates frequently miss the £1,000 PI threshold and wrongly apply the £10,000 limit to personal injury claims. This is a classic SQE1 trap.
Interim Applications and Case Management
Interim applications such as summary judgment, interim injunctions, security for costs, and striking out are frequently tested. Understanding the court's case management powers under CPR Part 3 is essential. The American Cyanamid test for interim injunctions and the test for summary judgment are heavily tested.
Evidence
Evidence covers disclosure obligations under CPR Part 31, witness statements, expert evidence, and hearsay. Students must know when evidence is admissible, the duties of expert witnesses, and the disclosure obligations. Candidates frequently confuse legal advice privilege with litigation privilege—know the distinction.
Trial Procedure
Trial procedure covers the order of proceedings, the burden and standard of proof in civil cases, the types of judgment a court may give, and the role of witness and expert evidence. The burden of proof lies on the claimant (balance of probabilities). The claimant opens, evidence is given by both parties, and the defendant typically closes first followed by the claimant.
Costs and Funding
Costs and funding are among the most heavily tested topics. Part 36 offers carry enormous consequences: if a claimant's offer is not beaten, the defendant pays indemnity costs plus interest plus up to £75,000 additional amount. Candidates must understand the standard and indemnity bases for assessing costs, costs budgeting in multi-track claims, and the different funding mechanisms available.
Settlement and ADR
Settlement and ADR are core to modern civil procedure. Part 36 offers are a procedural tool with massive consequences. Mediation and other forms of ADR are encouraged by the courts, and unreasonably refusing ADR can result in costs sanctions even if the refusing party wins. Without-prejudice communications are protected and cannot be used as evidence of admissions.
Appeals and Enforcement
Appeals and enforcement complete the litigation journey. Candidates need to understand the routes of appeal, the permission test (real prospect of success or other compelling reason), and the enforcement methods available: charging orders (for property), third-party debt orders (for bank accounts), writs of control (for goods), and attachment of earnings (for wages).
Key Principles for SQE1
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The Overriding Objective: CPR r.1.1 underpins the entire civil justice system: dealing with cases justly and at proportionate cost.
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Pre-action Conduct: Parties must exchange information, consider ADR, and follow relevant protocols before issuing proceedings.
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Procedural Compliance: Strict time limits and procedural requirements govern every stage from issue through to enforcement.
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Costs Follow the Event: The general rule is that the unsuccessful party pays the successful party's costs, subject to the court's discretion.
Exam tip
Always start your analysis with the overriding objective — it justifies almost every procedural decision the court makes and is the lens through which examiners frame questions.
How This Appears in SQE1 Questions
This is a classic SQE1 trap. Dispute Resolution questions on SQE1 are scenario-based multiple-choice questions, each offering five answer options (A–E). You will typically be presented with a client scenario that requires you to identify the correct procedural step, advise on the appropriate course of action, or apply a specific CPR rule to the facts.
The exam does not simply test knowledge recall. Questions are designed to assess whether you can apply procedural rules in context—for example, advising a client on whether a Part 36 offer should be accepted, determining which court has jurisdiction, or deciding whether an interim application is appropriate. Time management is critical because the procedural detail in each scenario can be dense.
The Litigation Timeline
Master the litigation timeline, and the rules click into place. Here's the journey:
- Pre-action — Parties exchange information, attempt settlement, consider ADR. Non-compliance may trigger costs sanctions.
- Issuing and serving — Claim form issued and served within six months. Limitation periods apply (six years for contract/tort, three years for PI).
- Response — Defendant has 14 days to acknowledge service or 28 days to file defence. Missing these deadlines risks default judgment.
- Allocation — Court allocates to small claims, fast track, or multi-track based on value and complexity.
- Disclosure and evidence — Parties disclose documents (CPR Part 31), exchange witness statements and expert reports.
- Interim applications — Either party may apply for summary judgment, interim injunctions, or other remedies.
- Settlement/ADR — Parties consider Part 36 offers, mediation, or negotiation.
- Trial — Parties present evidence; judge delivers judgment on the balance of probabilities.
- Appeals — Dissatisfied party may apply for permission to appeal (must show real prospect of success or compelling reason).
- Enforcement — Judgment creditor enforces using charging orders, third-party debt orders, writs of control, or attachment of earnings.
Key Exam Tips
- Master the timeline first — Examiners test procedural detail heavily, but these rules only make sense when you understand where they fit within a civil claim's journey.
- Know your thresholds — Track allocation depends on value: small claims up to £10,000 (£1,000 for PI); fast track £10,000–£25,000; multi-track over £25,000. The PI threshold is a trap.
- Understand Part 36 consequences — If a claimant's offer is not beaten at trial, the defendant pays indemnity costs plus interest plus up to £75,000. This is one of the highest-value topics on the exam.
- Master the 14/28-day deadlines — Missing response deadlines risks default judgment. Understand the test for setting aside default judgment (real prospect of defending or other compelling reason).
- Know the burden of proof — On the balance of probabilities (not beyond reasonable doubt). The claimant bears the burden.
How to Revise Dispute Resolution Effectively
Effective revision for SQE1 Dispute Resolution requires a structured, practice-led approach:
- Focus on understanding the procedural framework rather than memorising individual rules in isolation. Knowing where a rule fits within the litigation timeline is more useful than rote learning.
- Map out the stages of a civil claim from pre-action through to enforcement. Being able to visualise the process helps you identify which rules apply at each point.
- Pay close attention to time limits, because questions frequently test whether a step has been taken within the correct period.
- Practise MCQs regularly. Dispute Resolution questions often hinge on small procedural distinctions, and repeated practice builds the pattern recognition needed for exam day.
- Learn the key thresholds and percentages — track allocation values, Part 36 interest rates (up to 10% above base), additional amounts (up to £75,000)—these appear constantly.
Common Mistakes Students Make
- Confusing similar procedural steps — For example, mixing up the requirements for summary judgment and striking out, or conflating interim payment applications with interim injunctions.
- Misapplying time limits — The CPR contains numerous deadlines. Candidates frequently confuse service periods (six months from issue), filing periods (14/28 days to respond), and limitation periods (six years for contract/tort, three years for PI).
- Overlooking costs consequences — Part 36 offers and costs budgeting are tested regularly, and students often underestimate the level of detail required.
- Failing to integrate professional conduct obligations — SQE1 questions may embed ethical issues within a procedural scenario, and candidates who focus only on the CPR point can miss the correct answer.
- Forgetting the PI threshold — The small claims limit for personal injury claims is £1,000, not £10,000. This is a classic trap.
Quick Summary
- Master the litigation timeline from pre-action through enforcement
- Know the key time limits at each stage
- Understand costs consequences, especially Part 36
- Apply the overriding objective to procedural decisions
Want to test this now? Try a few SQE1-style questions below before moving on.
Test Yourself
Test yourself
Quick check questions based on this article.
Question 1
Scenario
A creditor obtains a County Court judgment for £35,000 against an individual debtor. The debtor fails to pay the judgment debt. The creditor's solicitor applies for an order to obtain information from the judgment debtor under CPR Part 71. At the hearing, the debtor discloses that he owns a residential property with equity of approximately £80,000 and receives a monthly salary of £3,200. The debtor also discloses a savings account containing £2,500 and a classic car valued at approximately £15,000. The creditor's solicitor considers the available enforcement methods. The debtor mentions during the hearing that he is planning to sell the property and move abroad within the next three months. The creditor's solicitor is also acting for the debtor's former business partner in an unrelated matter. The debtor has two dependent children. The creditor's solicitor has not informed the creditor about the concurrent retainer with the debtor's former business partner.
Which enforcement method is most appropriate in these circumstances, and is there a professional conduct concern?
Question 2
Scenario
A claimant obtained a County Court judgment against a defendant for £28,000 plus costs. The judgment was entered on 1 March 2025. The defendant has failed to pay any amount under the judgment. The claimant's solicitors have written two letters demanding payment, both of which have been ignored. The claimant wishes to enforce the judgment. The claimant's solicitor believes the defendant owns a residential property and may have funds in a bank account. The solicitor has also heard that the defendant recently went on holiday abroad. The claimant wants to know the best first step to identify the defendant's assets before choosing an enforcement method.
What should the claimant's solicitor recommend as the first step?
Question 3
Scenario
A judgment creditor obtained a County Court judgment for £25,000 against a judgment debtor. The judgment creditor's solicitor applied for a third party debt order against the judgment debtor's bank. The interim order was granted and served on the bank. The bank has confirmed that the account holds a credit balance of £30,000. However, the judgment debtor's solicitor has now written to the court stating that £22,000 of the funds in the account represents the proceeds of a personal injury claim that was settled last month. The judgment debtor's solicitor argues that these funds should not be subject to the third party debt order because they represent compensation for pain, suffering, and loss of amenity. The judgment debtor's solicitor has also pointed out that the judgment debtor receives Universal Credit and that the account also contains £1,500 representing the most recent benefit payment. The remaining £6,500 is from the judgment debtor's part-time earnings.
How should the court treat the different categories of funds in the account at the final hearing?
Practice with full exam-style questions
Practise Dispute Resolution Questions for SQE1
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