Legal Services and Damage Claims

Pre-Issue Processes

To ensure consistency, compliance, and effective case preparation, the supplier must adhere to the following Pre-Action Protocol Requirements:

• A Pre-Action Protocol (PAP) Letter of Claim is required only for business-to-individual cases.
• For all other cases where PAP does not apply, the supplier must follow the general pre-action requirements of the Civil Procedure Rules.

Case Preparation Requirements

For all Theft of Gas referrals, the supplier must obtain and document a propensity-to-pay score before taking legal action.

• Tracing Requirements - Where a debtor's address is unknown, unverified or disputed, the supplier must conduct a trace and provide results prior to issuing legal proceedings.

Workload Expectations

Cadent anticipates the following approximate volumes:

• Small Claims: Approximately 30 cases per month, generally falling below £5,000 in value.
• High Value Claims: At any given time, 20-30 ongoing matters with values above the small claim's threshold. A small number of these may range between £100,000 and £1-2 million and typically involve asset damage or theft of gas under relevant statutory frameworks.

Workstream 2 - Damage Claims:

Cadent requires legal support services to process and manage recovery of damages to its assets and, on a limited basis, the defence of claims brought against it by third parties. The services primarily relate to negligence-based damage claims, statutory claims, and construction-related disputes and include both volume-driven lower-value work and complex, high-value matters.

This process uses Evoclaim case management system, which Cadent would give access to the successful supplier. Additionally, there is a separate system for costings called Apperio which Cadent will facilitate access as required.

Damage Claims is split into two workstreams:

1. Low Value Claims (Below £10k):

a. Debt Recovery

b. Full Legal Action

1. High Value Claims (Over £10k)

The supplier would be required to manage and progress claims including, but not limited to:

• Claims arising from damage to assets, predominantly founded in negligence.
• Claims where third parties have failed to comply with relevant Health and Safety Executive (HSE) guidance when undertaking works.
• Statutory claims against other statutory undertakers pursuant to the New Roads and Street Works Act 1991 (NRSWA).
• Claims against occupiers under the Gas Act permitting works to be undertaken resulting in damage.
• Limited support in defending claims brought against the contracting authority, typically within the Small Claims Track.

Scope of Requirements

1A. Low Value Claims - Debt Recovery:

• Issuing a First Letter Before Action (LBA)
• Issuing a Second Letter Before Action.
• Drafting and issuing a Part 36 Offer where appropriate.

1B. Low Value Claims - Full Legal Action:

• Issuing a First Letter Before Action (LBA)
• Issuing proceedings and obtaining judgment in default where applicable.
• Managing defended matters through to resolution, with the contracting authority
• undertaking telephone mediation.
• Enforcement of judgments via High Court Enforcement Officers (HCEO) where required.

1. High Value Claims:

• These matters typically fall under the Pre-Action Protocol for Construction and Engineering Disputes.
• For context there were 13 high value claims were instructed in the last 12 months, ranging from £10,500 to £1.5 million.

1. Defence of Third Party Claims:

• The supplier may be required, on a limited basis, to assist with defending claims
• brought against the contracting authority, including Small Claims matters.

1. Disbursements

Workload Expectations:

Cadent anticipates the following volumes:

1. Low Value Claims (Below £10k):

a Debt Recovery = Circa 550 claims per annum.

b Full Legal Action = Circa 132 claims per annum.

1. High Value Claims (Over £10k) = Circa 10-15 per annum.