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5.2
Non-compliance with pre-action protocols under the CPR 
If there is non-compliance with any relevant pre-action protocol or the Practice
Direction, this can be taken into account by the court in giving directions.
  It could,
for instance, order the non-complying party to pay money into court,
such sums
becoming security for any sum payable by that party to any other party in the
proceedings.
  Non-compliance could also result in swingeing orders in respect of
costs and interest, including :-
"(1) 
an order that the party at fault pay the costs of the proceedings, or part of those costs,
of the other party or parties;
(2) 
an order that the party at fault pay those costs on an indemnity basis;
(3) 
if the party at fault is a claimant in whose favour an order for the payment of damages
or some specified sum is subsequently made, an order depriving that party of interest
on such sum and in respect of such period as may be specified, and/or awarding
interest at a lower rate than that at which interest would otherwise have been awarded;
(4)        if the party at fault is a defendant and an order for the payment of damages or some
specified sum is subsequently made in favour of the claimant, an order awarding interest
on such sum and in respect of such period as may be specified at a higher rate, not
exceeding 10 above base rate (cf CPR rule 36.21(2)), than the rate at which interest
would otherwise have been awarded."
Notes
Practice Direction - Protocols §2.3.
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