Health and Home Limited & Anor v Elite Property Holdings Limited & Ors

[2026] EWCA Civ 933

Summary

For the purposes of CPR rule 32.10, whether a hearing is a trial depends on its function and the procedural preparation required, rather than on the originating process or its listing label. A final hearing that determines substantive rights after pleadings, disclosure, trial witness statements and live evidence will ordinarily be a trial.

Finality and res judicata are relevant indicators, but are not decisive. Where rule 32.10 applies, late service of a trial witness statement engages its exclusionary sanction and requires relief under CPR rule 3.9. Court administrative errors, including the absence of a trial-fee notice, do not alter the proper construction of a case-management order.

Factual background

In insolvency proceedings concerning the beneficial ownership of 11 properties, Decolace Properties Ltd was joined as a third party after asserting that Elite had transferred the properties to it under an earlier intra-group transaction.

A directions order required points of claim and defence, disclosure, trial witness statements compliant with PD57AC, and a final three-day hearing with live evidence. Decolace served further witness evidence and documents after the extended deadline. The High Court refused a retrospective extension and relief from sanctions. Decolace consequently withdrew its substantive application.

Decolace appealed. The central issue was whether the final hearing of its application was a trial for CPR rule 32.10, and whether the judge should instead have adopted a lesser case-management response to the late evidence.

Held

  1. Appeal dismissed. Arnold LJ, with whom May and King LJJ agreed, held that the scheduled final hearing was a trial for CPR rule 32.10.

  2. The meaning of trial was to be determined in the context and purpose of rule 32.10. Its purpose is to enforce witness-statement deadlines so that litigation is prepared in an orderly way. The fact that Decolace had proceeded by a Part 23 application notice did not preclude the eventual hearing from being a trial.

  3. The hearing concerned substantive rights: the beneficial ownership of the properties. It was intended finally to decide that issue between the parties. Any resulting finality or res judicata effect was a relevant pointer, although it was not determinative.

  4. The directions were characteristic of preparation for a trial. They required pleading-like documents, standard disclosure, trial witness statements under PD57AC, and live evidence. The order’s wording could have been clearer, but it envisaged witnesses attending for cross-examination unless the court ordered otherwise. The absence of a formal trial-date notice, trial-fee notice, or a listing description of the hearing as a trial did not affect the order’s true effect.

  5. Rule 32.10 therefore imposed a sanction on Decolace’s late witness evidence, requiring relief under rule 3.9. Decolace did not challenge the findings that the breach was serious and significant, lacked a good explanation, and should have been addressed by a prompt application. The judge was entitled to refuse relief and was not required to select a lesser sanction or adjourn the hearing.

  6. Rule 32.10 did not govern the additional late disclosure documents. It was unnecessary to decide whether CPR rule 31.21 itself imposed a sanction requiring relief, because Decolace had not sought to rely on those documents independently of the excluded witness statement.

The court’s approach to earlier authorities

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Appellate history

  • Court of Appeal (Civil Division): dismissed Decolace’s appeal in [2026] EWCA Civ 933 .

  • High Court, Insolvency and Companies List (ChD): on 19 June 2025, David Mohyuddin KC sitting as a Deputy High Court Judge refused Decolace’s retrospective application to extend time for late evidence and disclosure documents, and refused relief from sanctions. No neutral citation was stated.

Appeal route

  1. Appealed fromNot stated in the judgmentThis appealappeal dismissed (unanimously)
  2. This judgment [2026] EWCA Civ 933 Court of Appeal (Civil Division)

Key cases cited

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