New High court Practice Direction introduced in Northern Ireland

A copy of Practice Direction 04 2026 can be found here.

Scope of the Practice Direction

The new Practice Direction replaces both the 2008 Practice Direction and the Pre-Action Protocol for Personal Injury Litigation and applies to High Court claims. It represents a comprehensive expansion of the previous provisions, applying at both the pre-action and active litigation stages.

A key development for insurers will be the expanded framework at the pre-action stage, with a key emphasis on the early exchange of information to achieve one of the principal objectives of the Practice Direction: placing the parties in a position to resolve cases fairly and without active litigation.

Important changes

The new Practice Direction incorporates detailed pre-action procedures, which are contained at paragraphs 4 to 10.

Some of the most significant provisions, long called for by insurers and their representatives, concern credit hire and vehicle damage claims.

The plaintiff's letter of claim, alongside providing a clear summary of the facts upon which the claim is based, should provide, where available and relevant, information relating to vehicle damage, hire and/or storage claims, including:

• Details of the heads of claim;
• A copy of the engineer's report, where available;
• Any diminution in market value report;
• Confirmation of the roadworthiness of the vehicle;
• Photographs of the vehicle damage and, where available, photographs of repairs undertaken;
• Key loss-of-use dates;
• All relevant invoices and agreements, including repair, hire, recovery and storage invoices and agreements;
• The MOT expiry date;
• The plaintiff's occupation, where relevant;
• Confirmation of whether potential travel outside Northern Ireland is required;
• VAT registration status; and
• Whether impecuniosity is being relied upon.

Where impecuniosity is relied upon, the Practice Direction provides that the plaintiff should provide the following information, if available:

1. Three months' bank/building society statements;
2. Three months' credit union savings statements or equivalent;
3. The monthly cost of servicing any debts/loans;
4. Details of outgoings at the time of the accident; and
5. Details of earnings at the time of the accident and, where earnings are not paid into a bank account, three months' payslips.

For personal injury claims, the Practice Direction also specifies that the letter of claim should include details of the nature of the injuries sustained, including any psychiatric or psychological aspect.

These changes significantly expand upon the information that should be exchanged between the parties when the letter of claim is issued or as soon as the relevant information becomes available thereafter.

Once the letter of claim has been received the key provisions include:

• A defendant should acknowledge receipt of the letter of claim within 21 days. Thereafter, in the vast majority of cases, a defendant has a maximum of three months from the date of acknowledgement to investigate. Where the accident occurred outside Northern Ireland and/or the defendant is outside the jurisdiction, these periods will normally be extended to 42 days and six months respectively.
• The defendant's response should confirm whether liability is admitted or denied. Where liability and/or causation is denied, the defendant should explain the reasons with sufficient clarity and precision, including an indication of any facts likely to be relied upon in support of the defence.
• If liability is admitted, the plaintiff should provide their available medical evidence and a schedule of past and future expenses and losses, identifying any losses that remain ongoing.
• Where liability and/or causation is denied, the defendant should provide documents in its possession which are material and relevant to the issues. The Direction also provides that the defendant should serve any evidence relating to previous accidents involving the plaintiff upon which it may rely.
• The parties are encouraged to explore rehabilitation at an early stage and to consider whether negotiation or another form of Alternative Dispute Resolution would enable the dispute to be resolved without commencing proceedings.

Commencement of proceedings

The Practice Direction also creates clear expectations around when proceedings should be commenced.

• Unless limitation or some other issue requires the plaintiff's position to be protected by early issue, where liability is denied, proceedings should not generally be issued until four months from the date of acknowledgement of the letter of claim.
• Where liability is admitted, proceedings should not generally be issued until 28 days after service of the plaintiff's available medical evidence and schedule of past and future expenses and losses.

The Practice Direction also states that :-

“The court may consider costs penalties and/or procedural penalties for noncompliance, such as a stay in proceedings if there is no letter of claim or no letter of acknowledgement and/or substantive response from the proposed defendant(s).”

Comment

Overall, the new Practice Direction represents a significant expansion of the framework that governs the conduct of High Court personal injury and damage-only litigation in Northern Ireland, with a clear objective of resolving cases without litigation and, where litigation is necessary, ensuring that cases are progressed efficiently.

The introduction of the new Practice Direction will be largely welcomed by insurers and should, if followed, place the parties in a position where they have sufficient information to settle appropriate cases fairly and without litigation.