Pre-action disclosure

INTRODUCTION

In England and Wales, an application can be made for pre-action disclosure under CPR r. 31.16 and s.33 of the Senior Courts Act 1981.

This article will consider pre-action disclosure ('PAD') in light of:

(1) CPR  r.31.16, entitled 'Disclosure before proceedings start' (for 'Business and Property Courts' r.31.16 as it appears in Practice Direction 57AD)

(2) Senior Courts Act 1981, s.33, entitled 'Powers of High Court exercisable before commencement of action', particularly, s.33(2);

(3) Black v Sumitomo [2002] WLR 1562 ('Black'), Court of Appeal (Ward LJ; May LJ; Rix LJ) on 3.12.01;

(4) Assetco Plc v Grant Thornton UK LLP [2013] EWHC 1215 (Comm) ('Assetco'), High Court (Blair J) on 25.1.13;

(5) Rana v Thapa [2015] 10 WLUK 818 ('Rana'), High Court (Master Matthews) on 30.10.15;

(6) The ECU Group plc v HSBC Bank plc [2017] EWHC 3011 (Comm); [2018] Lloyd's Rep. F.C. 44 ('ECU'), High Court (HHJ Waksman QC (sitting as a Judge of the High Court)) on 24.11.17;

(7) Dale v BDO LLP (also known as Re NMCN Plc (In Liquidation), Re, NMCN Sustainable Solutions Ltd (In Liquidation)) [2025] EWHC 446 (Ch) ('Dale'), High Court (ICC Judge Burton) on 27.2.25;

(8) Zhang v Mishcon de Reya LLP [2025] 4 WLUK 168 ('Zhang'), High Court (Mr Stephen Hofmeyr KC (sitting as a Deputy High Court Judge)) on 9.4.25[1];

(9) PMD Business Finance Holdings Ltd v Schofield [2026] EWHC 10 (KB) ('PMD'), High Court (HHJ Karen Walden-Smith sitting as a Judge of the High Court) on 5.1.26;

To assist:

(1) Assetco contains a helpful summary of the general princples (quoted below);

(2) Black is the leading authority - wherein, Rix LJ explained the correct approach to a pre-action disclosure application;

(3) Zhang is a recent 'go to' authority, drawing together some of the principles/propositions;

Business and Property Court

Where the pre-action disclosure application will be in a Business and Property Court, r.31.16 as it appears in Practice Direction 57AD, will apply (though it is worded the same)[2].

Reported authorities - focus on general principles rather than application to the facts

This article will focus on the general principles in this area of law. This article will not engage, in respect to the reported cases, in a detail analysis of how the facts fitted into the applicable legal tests. In Zhang, such analysis, for the purpose of making comparisons, was discouraged. At paragraph 40, the Judge in Zhang said:

''From time to time courts have attempted to compare the facts of reported pre-action disclosure cases with the facts of the cases before them to aid them in their analysis. Attention may be drawn to factual similarities and courts may be invited to reach similar conclusions. This exercise of comparison is usually an unhelpful exercise since each case presents its own unique facts. The circumstances which are relevant to the exercise of the discretion in one case and the weight to be given to each will inevitably vary from case to case. Reported pre-action disclosure cases are useful for the general principles they enunciate but an exercise of comparing facts is seldom profitable.'

Section 33(2) of the Senior Courts Act 1981

Senior Courts Act 1981, s.33 is, as stated, entitled 'Powers of High Court exercisable before commencement of action'[3] and s.33(2) reads:

'On the application, in accordance with rules of court, of a person who appears to the High Court to be likely to be a party to subsequent proceedings in that court the High Court shall, in such circumstances as may be specified in the rules, have power to order a person who appears to the court to be likely to be a party to the proceedings and to be likely to have or to have had in his possession, custody or power any documents which are relevant to an issue arising or likely to arise out of that claim-

(a) to disclose whether those documents are in his possession, custody or power; and

(b) to produce such of those documents as are in his possession, custody or power to the applicant or, on such conditions as may be specified in the order—

(i) to the applicant's legal advisers; or

(ii) to the applicant's legal advisers and any medical or other professional adviser of the applicant; or

(iii) if the applicant has no legal adviser, to any medical or other professional adviser of the applicant.'

CPR R.31.16

CPR r.31.16 is, as stated, entitled 'Disclosure before proceedings start' and reads:

'(1) This rule applies where an application is made to the court under any Act for disclosure before proceedings have started. 

(2) The application must be supported by evidence.

(3) The court may make an order under this rule only where—

(a) the respondent is likely to be a party to subsequent proceedings;

(b) the applicant is also likely to be a party to those proceedings;

(c) if proceedings had started, the respondent’s duty by way of standard disclosure, set out in rule 31.6, would extend to the documents or classes of documents of which the applicant seeks disclosure; and

(d) disclosure before proceedings have started is desirable in order to—

(i) dispose fairly of the anticipated proceedings;

(ii) assist the dispute to be resolved without proceedings; or

(iii) save costs.

(4) An order under this rule must-

(a) specify the documents or the classes of documents which the respondent must disclose; and

(b) require him, when making disclosure, to specify any of those documents—

(i) which are no longer in his control; or

(ii) in respect of which he claims a right or duty to withhold inspection.

(5) Such an order may-

(a) require the respondent to indicate what has happened to any documents which are no longer in his control; and

(b) specify the time and place for disclosure and inspection.'

Structure

Pre-action applications under r.31.16 are to be considered in 2 main stages:

(1) threshold conditions stage (sometimes called the 'jurisdictional requirement', or 'gateways', stage); and 

(2) discretionary stage.

In Rana, Master Matthews said, at paragraph 8:

'It is clear from the authorities that the court, in considering an application under r.31.16, should first of all consider whether the threshold conditions in sub-rule (3) are satisfied, and then should consider in the round, as a matter of discretion, whether it is appropriate to make the order.'

In Black, Rix LJ said:

(1) '...it is necessary not to confuse the jurisdictional and the discretionary aspects of the paragraph as a whole.' (paragraph 81) - this is particularly so as between r 31.16(3)(d) and the discretionary stage; and 

(2) '...all the jurisdictional thresholds which have to be passed (“only where”) in order to vest a court with discretion to make an order for pre-trial disclosure.' (paragraph 69)

Accordingly,

Stage 1 - The threshold conditions

The threshold conditions (sometimes called 'jurisdictional requirements') are:

'The court may make an order under this rule only where-

(a) the respondent is likely to be a party to subsequent proceedings;

(b) the applicant is also likely to be a party to those proceedings;

(c) if proceedings had started, the respondent’s duty by way of standard disclosure, set out in rule 31.6, would extend to the documents or classes of documents of which the applicant seeks disclosure; and

(d) disclosure before proceedings have started is desirable in order to—

(i) dispose fairly of the anticipated proceedings;

(ii) assist the dispute to be resolved without proceedings; or

(iii) save costs.' [bold added]

The threshold conditions are cumulative. In other words, each of the 4 threshold conditions must be satisfied, for the Court to have the power, under r.31.16, to make a pre-action disclosure order. This is clear from the word 'and' at the end of r.31.16(3)(cc) (as highlighted in bold). 

Stage 2 - discretionary stage

This arises from the use to the word 'may' in the first part of r.31.16(3), wherein it states 'The court may make an order under this rule...' [bold added]. The question for the Court is whether to exercise this discretion, which entails the Court asking itself whether it appropriate (or not), in the circumstances, for a pre-action disclosure order to be made (Rana, paragraph 23).

Relative Tests 

In terms of the balance of difficulty, as between Stage 1 and Stage 2 (i.e. each's 'height of the hurdle), Rix LJ in Black said, at paragraph 73:

'The jurisdictional threshold is not, I think, intended to be a high one. The real question is likely to be one of discretion, and answering the jurisdictional question in the affirmative is unlikely in itself to give the judge much of a steer as to the correct exercise of his power.'

Explainations 

In PMD, the Judge explained, at paragraph 3:

'CPR 31.16 sets out the provisions for the granting of an order for disclosure before the commencement of proceedings. CPR 31.16 (3) provides that the court may make an order under this rule where:

(a) the respondent is likely to be a party to subsequent proceedings;

(b) the applicant is also likely to be a party to those proceedings;

(c) if proceedings had started, the respondent's duty by way of standard disclosure, set out in rule 31.6, would extend to the documents or classes of documents of which the applicant seeks disclosure; and

(d) disclosure before proceedings have started is desirable in order to—

(i) dispose fairly of the anticipated proceedings;

(ii) assist the dispute to be resolved without proceedings; or

(iii) save costs.'

Summary 

In Assetco, Blair J said, at paragraph 17:

'The law applicable to the application is not materially in dispute. CPR rule 31.16 provides that the court may make an order for pre-action disclosure only if certain conditions are satisfied:

(1) The respondent and applicant must both be likely to be parties to subsequent proceedings. (It is not however necessary to show in addition that the initiation of such proceedings is itself likely: Black v Sumitomo Corp [2002] 1 WLR 1562 at [71–72], Rix LJ, which is the leading case on the rule.)

(2) The documents sought must fall within the scope of the standard disclosure which the respondent would have to give in the anticipated proceedings. It follows that at the time of the application, the issues must be sufficiently clear to enable this requirement to be properly addressed (see XL London Market Ltd v Zenith Syndicate Management Ltd [2004] EWHC 1182 (Comm), at [22], Langley J).

(3) Disclosure before proceedings have started must be desirable (i) to dispose fairly of the anticipated proceedings, (ii) to assist the dispute to be resolved without proceedings, or (iii) to save costs (CPR rule 31.6(3)(d)).

(4) In considering whether to make an order, among the important considerations are the nature of the loss complained of, the clarity and identification of the issues raised by the complaint, the nature of the documents requested, the relevance of any protocol or pre-action inquiries, and the opportunity which the complainant has to make his case without pre-action disclosure (Black v Sumitomo Corp at [88]).

(5) The anticipated claim must have a real prospect of success ( Rose v Lynx Express [2004] BCLC 455).

(6) Finally, it is important to keep in mind that, certainly in the commercial context, a pre-action disclosure order, even if not exceptional, is unusual ( First Gulf Bank v Wachovia Bank [2005] EWHC 287 at [24], Christopher Clarke J).'

Propositions (2), (3) and (4) were quoted in PMD (paragraph 28). 2 points were made in PMD:

(1) 'The court must consider whether, in the round, the pre-action disclosure meets the requirements of CPR 31.16 and whether it is in furtherance of the overriding objective (see Hands v Morrison Construction Services Ltd [2006] EWHC 2018).' (paragraph 29)

(2) 'It is not for the court, in the context of this application, to embark upon a determination of substantive issues in the case (see Rose v Lynx Express Ltd [2004] EWCA 447)' (paragraph 30)

ECU

In ECU, HHJ Waksman QC said, under the heading 'The Law' (after quoting r.31.16), at paragrpah 17:

'The leading case is Black v Sumitomo [2002] 1 WLR 1562. The following propositions may be derived from the judgment of Rix LJ:

(1) The requirements in [CPR 31.16] (3)(a) and (b) are simply about the likely parties to any claim, not its underlying merits and 'likely' in this context means 'may well'; see paragraphs 71 and 72;

(2) Requirement (c) will raise the question of the clarity of the issues which would arise once the litigation has started, without which such clarity it will be difficult to say if the documents now sought would fall within standard disclosure; see paragraph 76;

(3) Requirement (d) with its three possible variants constitutes both a jurisdictional threshold and also a set of factors which are required to be considered in more detail when the question of discretion is dealt with; see paragraphs 81 and 82;

(4) The jurisdictional threshold is not intended to be a high one and the real question is likely to be the exercise of discretion which will not be much assisted by the simple fact that the jurisdictional threshold is met; see paragraph 73; if it were otherwise, that would tend to suggest that orders would be made much more frequently under this provision than they are; see paragraph 85;

(5) The discretion itself is not confined and will depend on all the facts of the case; important considerations will include the nature of the injury or loss complained; the clarity and identification of the issues raised by the complaint; the nature of the documents requested; the relevance of any protocol or any pre-action enquiries and the opportunity which the complainant has to make his case without PAD; see paragraph 88;

(6) In addition, if there is considerable doubt as to whether the usual disclosure stage would ever be reached, the court can take this into account as affecting discretion; see paragraph 77. This must be a reference to particular or legal obstacles which the putative claim may face;

(7) At paragraph 92 Rix LJ stated 'unless there is some real evidence of dishonesty or abuse which only early disclosure can properly reveal and which may, in the absence of such disclosure, escape the probing eye of the litigation process and thus possibly all detection, I think that the court should be slow to allow a merely prospective litigant to conduct a review of the documents of another party, replacing focused allegation by a roving inquisition'. This observation was made in the context of Rix LJ having found that the complaint in that case was factually and legally 'speculative in the extreme' see paragraph 91. Context is important because it is otherwise hard to see why it must be shown that in the absence of early disclosure the evidence would (later) escape the eye of the legal process;

(8) The more focused the complaint, and the more limited the disclosure sought in that connection, the easier it is for the court to exercise its discretion in favour of [pre-action disclosure], even where the complaint might seem somewhat speculative or the request argued to be mere fishing. The court might be entitled to take the view that transparency was what the interest of justice and proportionality most required. But the more diffuse the allegations and the wider the disclosure sought, more sceptical the court is entitled to be about the merit of the exercise; see paragraph 95.'

A full extract from Black is contained in a footnote[4]. An additional proposition given in Black is that: 

'paragraph (3)(d) may involve a two-stage process. I think that is correct. In my judgment, for jurisdictional purposes the court is only permitted to consider the granting of pre-action disclosure where there is a real prospect in principle of such an order being fair to the parties if litigation is commenced, or of assisting the parties to avoid litigation, or of saving costs in any event. If there is such a real prospect, then the court should go on to consider the question of discretion, which has to be considered on all the facts and not merely in principle but in detail.' (paragraph 81)

Zhang 

In Zhang, under the heading 'The Law' and after setting out r.31.16 and s.33(2), the Judge said:

(1) at paragraph 9, under the heading 'Assumptions and Findings of Fact':

'On an application for pre-action disclosure, the court may have to make, and generally of necessity will have to make, assumptions about the factual circumstances, assumptions which may ultimately prove incomplete or incorrect. For this reason, any findings of fact or assumptions about the facts cannot be definitive and will not be binding at any trial of the substantive claim. Further, the court should be hesitant about embarking upon any determination of substantive issues in the case. In order to found an application under CPR 31.16(3), it will normally be sufficient for the prospective claim to be properly arguable and to have a real prospect of success, and it will normally be appropriate to approach the conditions in CPR 31.16(3) on that basis: Rose v Lynx Express Ltd [2004] EWCA (Civ) 447, at [4].'

(2) at paragraphs 28 to 32:

'Every application for pre-action disclosure should be crafted with great care so that it is properly limited to what is strictly necessary: Snowstar Shipping Company Ltd. v Graig Shipping Plc [2003] EWHC 1367 Comm, at [35].

CPR 31.16(3)(a) to (d) set out the jurisdictional thresholds that must be satisfied before a pre-action disclosure order may be made. The application has to be made by a person likely to be a party to subsequent proceedings against a person likely to be a party to the proceedings. The respondent's duty by way of standard disclosure will extend to the documents sought if proceedings had started, and disclosure before proceedings have started must be desirable for at least one of three reasons. The court is only permitted to consider the granting of pre-action disclosure where there is a real prospect in principle of such an order (i) being fair to the parties if litigation is commenced, (ii) of assisting the parties to avoid litigation, or (iii) of saving costs in any event: Black v Sumitomo [2002] 1 WLR 1562, [81].

Only if the jurisdictional thresholds are met does the court have a discretion to determine whether to make an order. It is therefore essential in each case that the court carries out both stages of the analysis.

There is no express or implied jurisdictional threshold regarding the merits of the claim: Smith v Secretary of State for Energy [2014] 1 WLR 2283, para.23.

The leading case on pre-action disclosure is Black v Sumitomo [2002] WLR 1562, in which the correct approach to a pre-action disclosure application is explained in some detail by Rix LJ.

(3) at paragraph 33, 'A list of propositions may be derived from the judgment of Rix LJ, and they were helpfully gathered together by HHJ Waksman in The ECU Group plc v HSBC Bank plc [2017] EWHC 3011 (Comm), [17]:'. The Judge in Zhang then quoted the 8 propositions identified in ECU from Rix LJ's judgment in Black. The Judge in Zhang then continued, at paragraphs 34 to 39:

'As already noted, the court's discretion is not confined and will depend on all of the facts of the case. Factors that may be relevant to the exercise by the court of its discretion, additional to those identified, include any opportunity that the applicant may have of obtaining documents from an alternative source which would militate against pre-action disclosure: Black v Sumitomo at [97]; the applicant's conduct in the proceedings, including any "lack of frankness" concerning the basis for pursuing a claim, and the existence of proceedings in other jurisdictions raising similar issues which reflect the centre of gravity of the disputes: Pineway Ltd v London Mining Co Ltd [2020] EWHC 1143 (Comm), [54] to [55], and where there is no prospect of the applicant being able to establish a viable claim: Smith v Secretary of State for Energy, to which I have already referred, at [20] to [26]. It has also been said that the more speculative the claim, the less inclined the court is to grant the application, and its weakness is a factor which may be taken into account when considering whether a pre-action disclosure order should be made: Snowstar Shipping Company Ltd. v Graig Shipping [2003] EWHC 1367 (Comm), [33].

In almost every dispute a case could be made out that pre-action disclosure would be useful in achieving a settlement or otherwise saving costs, but that is not sufficient. There must be something unusual, something which takes the case outside the usual run, before pre-action disclosure will be ordered: Hutchinson 3G UK Ltd v O2 (UK) Ltd [2008] EWHC 50 (Comm), at [55], and Taylor Wimpey UK Ltd v Harron Homes Ltd [2020] EWHC 1190 (TCC), at [39]. In most cases pre-action disclosure will not be appropriate.

As regards applications in the Commercial Court, relatively recent guidance has been provided by Jacobs J in Carillion plc (in liquidation) v KPMG LLP & Anor [2020] EWHC 1416 (Comm), at [15]:

"Applications for pre-action disclosure in the Commercial Court are relatively rare, and the authorities to which I was referred contain no recent examples of successful applications. The 2018 edition of the White Book (paragraph C1A-010) said that pre-action disclosure orders are 'far from a foregone conclusion especially in the Chancery and Commercial courts.' In Hutchinson 3G UK Ltd. v O2 (UK) Ltd. [2008] EWHC 55 (Comm), Steel J. said (at [55]) that in order to obtain pre-action disclosure, the circumstances must be outside the 'usual run'; and that the absence of any convincing grounds for distinguishing the case from the normal run would be telling grounds for not exercising the court's discretion in favour of pre-action disclosure. In Assetco plc v Grant Thornton UK LLP [2013] EWHC 1215, Blair J. said (at [17]) that it was important to bear in mind that, certainly in the commercial context, a pre-action disclosure order is, if not exceptional, unusual. That case shows that pre-action disclosure of audit working papers is not viewed as the norm for audit negligence in the Commercial Court, notwithstanding that such documents will in due course likely be core documents for disclosure once the proceedings have started and pleadings have been exchanged."

The learned judge then quoted from the then current edition of the Commercial Court Guide, but I will make reference to the latest edition which reads as follows:

"B.3.2 Subject to complying with the Practice Direction and any applicable approved protocol, the parties to proceedings in the Commercial Court are not required, or generally expected, to engage in elaborate or expensive pre-action procedures, and restraint is encouraged.

B.3.3 Thus, the letter of claim should be concise and it is usually sufficient to explain the proposed claim(s), identifying key dates, so as to enable the potential defendant to understand and to investigate the allegations. Only essential documents need be supplied, and the period specified for a response should not be longer than one month without good reason."

In exercising his discretion in that case Jacobs J also said this at [91] and [92]:

"91. Secondly, against that background, I agree with Mr. Gaisman's submission that, in seeking further disclosure in order to seek to obtain a view on negligence which is 'concluded' and 'fully informed', Carillion is seeking a level of assurance and certainty which is inappropriate and does not justify the application which is made. It would be possible to say, in every professional negligence case in the Commercial Court, that pre-action disclosure would assist the claimant's expert in coming to a fully informed or concluded view on the issue of negligence. However, pre-action disclosure is not the norm, even in audit cases, as shown by Assetco and the absence of any recent authority where such disclosure has been ordered. The nature of civil litigation is that it is uncertain, and the process of providing information in order to enable experts and others to give concluded or 'fully informed' views is necessarily a lengthy one. The provision of disclosure is certainly a key part of that process, but the norm is for that to be provided once the litigation has started, and the Commercial Court has taken steps (reflected in the Disclosure Pilot contained in CPR PD 51U) to control that disclosure. The process of enabling concluded or fully informed views to be reached by experts does not, however, stop with disclosure. Experts need to consider what the fact witnesses say in their statements. Hence, expert reports are invariably exchanged or served only some time after factual witness statements, so that the reports can be informed by relevant witness evidence. The experts themselves will invariably only give their evidence, and hence their final views, after the factual witnesses have given evidence at trial. Accordingly, even if the disclosure now sought were to be provided, it would only provide an additional step on the road to an expert reaching a concluded or fully informed view. However, as the 38-page letter and Mr. Bunting's statement show, Carillion and its expert have been able on the materials available to take significant steps down that road already, and have been able to reach a view which is clearly strongly held. Whilst this is said to be based on "inference", there is nothing inherently unsatisfactory about that: inference is, generally speaking, a conclusion which a person can sensibly reach on the basis of existing information.

92. An expert engaged for the purposes of litigation would, of course, always like as much information as possible as early as possible. However, I do not think that the desire of an audit expert to have more information so as to convert his 'prima facie' views into more certain 'concluded' or 'fully informed' views, is a matter which generally speaking should lead to an order under CPR 31.16. In the present case, where it is clear that the expert has already formed a prima facie view which Carillion has been able to articulate in detail, the case for doing so is far from compelling. I do not consider that 'out of the norm' expensive pre-trial procedures are appropriate in order to provide a level of perfectionism or comfort for an expert's views, in circumstances where the expert has material on which he has been able to express a view which is sufficient to enable Carillion to start proceedings and plead its case.

There is no general rule that pre-action disclosure cannot be granted when an applicant can already plead its claim. The power to grant pre-action disclosure was intended to assist not only those who needed disclosure as a vital step in deciding whether to litigate at all, or as a vital ingredient in the pleading of their case, but also those who could plead a cause of action to improve their pleadings: Black v Sumitomo, at [68]. However, it is not enough that disclosure would enable a case to be pleaded with greater specificity, since something more than an ability to focus pleadings is required for there to be pre-action disclosure: Graffica Ltd v University of Birmingham [2018] EWHC 2683 (IPEC), at [9]. Further, if it were "perfectly possible" for the applicant to commence proceedings without pre-action disclosure, disclosure would not be needed to "dispose fairly of the anticipated proceedings", within the meaning of CPR 31.16(3)(d): Attheraces Ltd & Anor v Ladbrokes Betting and Gaming Ltd & Ors [2017] EWHC 431 (Ch), at [42].'

(5) at paragraph 40 - giving a warning against the unhelpful exercise of comparing the facts of one authority, with the facts in the application before the Court:

'From time to time courts have attempted to compare the facts of reported pre-action disclosure cases with the facts of the cases before them to aid them in their analysis. Attention may be drawn to factual similarities and courts may be invited to reach similar conclusions. This exercise of comparison is usually an unhelpful exercise since each case presents its own unique facts. The circumstances which are relevant to the exercise of the discretion in one case and the weight to be given to each will inevitably vary from case to case. Reported pre-action disclosure cases are useful for the general principles they enunciate but an exercise of comparing facts is seldom profitable.'

In light of this warning, it is sufficient to say that, in Zhang, the PAD application failed[5].

Dale

While not the focus of the case (which was an application under Insolvency Act 1986 s.235 and s.236), ICC Judge Burton in Dale, at paragraph 46, said:

'The court's discretion to order pre-action disclosure is generally not exercised where the claimant already has sufficient material to decide whether or not to commence proceedings, even if their case cannot be perfectly pleaded at that stage. Ms Sabben-Clare referred the court to Carillion Plc (in liquidation) v KPMG [2020] EWHC 1416 (Comm) where the court declined to order pre-action disclosure and AssetcCo Plc v Grant Thornton UK LLP [2013] EWHC 1215 (Com) where an order was similarly refused, as neither a letter of claim nor particulars of claim had been prepared identifying the issues between the parties.'

SIMON HILL © 2026*

BARRISTER 

33 BEDFORD ROW

Simon Hill practices in the following areas: insolvency, company and business law, with some tax and property law.

Further articles on topics relating to his practice areas can be read under his Insights. Should you wish to instruct Simon Hill then please do not hesitate to contact his clerk Geoff Carr

NOTICE: This article is provided free of charge for information purposes only; it does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of Chambers or by Chambers as a whole, or the Copyright holder. No attempt has been made to provide an exhaustive review/account of the law in this area. *Copyright is owned by Barrister Search Limited.

[1] It is surprising that Zhang v Mishcon de Reya LLP [2025] 4 WLUK 168 is not more widely reported that merely on Westlaw

[2] CPR r.57A.1 is entitled 'The Business and Property Courts' and defines what, together, constitute 'the Business and Property Courts'. It provides:

'(1) The courts listed in paragraph (2) together constitute the Business and Property Courts.

(2) The courts referred to in paragraph (1) are-

(a) the Chancery Division of the High Court, the Commercial Court, the Technology and Construction Court, the Circuit Commercial Court and the Admiralty Court located in the Royal Courts of Justice, Rolls Building; together with

(b) the Chancery Division of the High Court, the Technology and Construction Court and the Circuit Commercial Courts in the District Registries of the High Court specified in Practice Direction 57AA – Business and Property Courts.'

CPR r.57A.3 is entitled 'Application of the Civil Procedure Rules' and reads:

'These Rules and their practice directions apply to claims in the Business and Property Courts unless this Part or a practice direction provides otherwise.'

The practice directions are:

(1) Practice Direction 57AA—Business and Property Courts; 

(2) Practice Direction 57AB—Shorter and Flexible Trials Schemes; and

(3) Practice Direction 57AC—Trial Witness Statements in the Business and Property Courts.

It is the first of these that is relevant, namely, Practice Direction 57AA - Business and Property Courts.

Practice Direction 57AA supplements CPR Part 57A. Section II of Practice Direction 57AA contains a provision: 31.16, entitled 'Disclosure before proceedings start', which reads:

'(1) This rule applies where an application is made to the court under any Act for disclosure before proceedings have started.

(2) The application must be supported by evidence.

(3) The court may make an order under this rule only where—

(a) the respondent is likely to be a party to subsequent proceedings;

(b) the applicant is also likely to be a party to those proceedings;

(c) if proceedings had started, the respondent’s duty by way of standard disclosure, set out in rule 31.6, would extend to the documents or classes of documents of which the applicant seeks disclosure; and disclosure before proceedings have started is desirable in order to—

(i) dispose fairly of the anticipated proceedings;

(ii) assist the dispute to be resolved without proceedings; or

(iii) save costs.

(4) An order under this rule must-

(a) specify the documents or the classes of documents which the respondent must disclose; and

(b) require him, when making disclosure, to specify any of those documents-

(i) which are no longer in his control; or

(ii) in respect of which he claims a right or duty to withhold inspection.

(5) Such an order may—

(a) require the respondent to indicate what has happened to any documents which are no longer in his control; and

(b) specify the time and place for disclosure and inspection.'

In Zhang v Mishcon de Reya LLP [2025] 4 WLUK 168 ('Zhang'), the Judge said, at paragraph 27:

'On behalf of [the respondent to the pre-action disclosure application] it is submitted that the relevant provision in the rules is now para.31.16 of Practice Direction 57AD, and not CPR rule 31.16, but nothing turns on this submission, save perhaps in relation to the court's discretion, because there is no material difference between the wording of the provisions.'

(it is not clear what 'save perhaps in relation to the court's discretion' means, and the Judge did not, in Zhang, elaborate on this)

[3] For completeness, the Senior Courts Act 1981, s.33, entitled 'Powers of High Court exercisable before commencement of action' reads in its entirety:

'(1) On the application of any person in accordance with rules of court, the High Court shall, in such circumstances as may be specified in the rules, have power to make an order providing for any one or more of the following matters, that is to say-

(a) the inspection, photographing, preservation, custody and detention of property which appears to the court to be property which may become the subject-matter of subsequent proceedings in the High Court, or as to which any question may arise in any such proceedings; and

(b) the taking of samples of any such property as is mentioned in paragraph (a), and the carrying out of any experiment on or with any such property.

(2) On the application, in accordance with rules of court, of a person who appears to the High Court to be likely to be a party to subsequent proceedings in that court the High Court shall, in such circumstances as may be specified in the rules, have power to order a person who appears to the court to be likely to be a party to the proceedings and to be likely to have or to have had in his possession, custody or power any documents which are relevant to an issue arising or likely to arise out of that claim-

(a) to disclose whether those documents are in his possession, custody or power; and

(b) to produce such of those documents as are in his possession, custody or power to the applicant or, on such conditions as may be specified in the order-

(i) to the applicant's legal advisers; or

(ii) to the applicant's legal advisers and any medical or other professional adviser of the applicant; or

(iii) if the applicant has no legal adviser, to any medical or other professional adviser of the applicant.

(3) This section applies in relation to the family court as it applies in relation to the High Court.'

[4] In Black v Sumitomo [2002] WLR 1562, Rix LJ (with whom May LJ and Ward LJ agreed), turned to s.33(2) and r.31.16, the law in this area. Rix LJ adopted the following approach. He considered 

(1) the jurisdictional stage:

Rix LJ said he would '...consider first of all the jurisdictional thresholds which have to be passed (“only where”) in order to vest a court with discretion to make an order for pre-trial disclosure.' (paragraph 69). This he did:

(a) r.31.16(3)(a) and (b) together, at paragraphs 70 to 73; then

(b) r.31.16(3)(c), at paragraphs 74 to 78, then

(c) CPR r 31.16(3)(d), at paragraph 79 to 86. And then, 

(2) discretionary stage, at paragraphs 87 onwards. 

Rix LJ said:

'CPR r 31.16(3)(a) and (b): “likely to be a part”

70. The application has to be made by “a person… likely to be a party to subsequent proceedings” against “a person… likely to be a party to the proceedings” (section 33(2)) and those requirements are reflected (in reverse order) in CPR r 31.16(3)(a) and (b). There is no longer any statutory requirement that “a claim… is likely to be made”.

71. Of course, in one sense it might be said that a person is hardly likely to be a party to subsequent proceedings whether as a claimant or otherwise unless some form of proceedings is itself likely to be issued. Two questions, however, arise. One is whether the statute requires that it be likely that proceedings are issued, or only that the persons concerned are likely to be parties if subsequent proceedings are issued. The other is whether “likely” means “more probably than not” or “may well”. As to the first question, in my judgment the amended statute means no more than that the persons concerned are likely to be parties in proceedings if those proceedings are issued. That was what Lord Woolf had in mind when he wrote of the requirement that “there is a likelihood that the respondent would indeed be a defendant if proceedings were initiated” (in Section III, para 50, of his final “Access to Justice” report, quoted in paragraph 49 above). The omission of any language which expressly requires that the initiation of proceedings itself be likely, which could have been included in the amended section, appears to me to reflect the difficulties which the earlier authorities had explored in the sort of circumstances found in Dunning v United Liverpool Hospital's Board of Governors [1973] 1 WLR 586. What the current language of the section appears to me to emphasise, as does the rule of court, is that the parties concerned in an application are parties who would be likely to be involved if proceedings ensued. The concern is that pre-action disclosure would be sought against a stranger to any possible proceedings, or by a party who would himself be unlikely to be involved. If the statute and rule are understood in this sense, then all difficulties, which might arise where the issue of proceedings might depend crucially on the nature of the disclosure sought and where it is impossible at the time of making the application to say whether the disclosure would critically support or undermine the prospective claim, disappear.

72. As to the second question, it is not uncommon for “likely” to mean something less than probable in its strict sense. It seems to me that if I am wrong about the first question, then it is plain that “likely” must be given its more extended and open meaning (see Lord Denning MR in Dunning's case), because otherwise one of the fundamental purposes of the statute will have been undermined. If, however, I am right about the first question, the second question is of less moment. Even so, however, I am inclined to answer it by saying that “likely” here means no more than “may well”. Where the future has to be predicted, but on an application which is not merely pre-trial but pre-action, a high test requiring proof on the balance of probability will be both undesirable and unnecessary: undesirable, because it does not respond to the nature and timing of the application; and unnecessary, because the court has all the power it needs in the overall exercise of its discretion to balance the possible uncertainties of the situation against the specificity or otherwise of the disclosure requested. Clearly, the narrower the disclosure requested and the more determinative it may be of the dispute in issue between the parties to the application, the easier it is for the court to find the request well founded, and vice versa.

73. On this basis, I think that the judge was led into error by the fact that before him there had been a large degree of common ground about seeking to derive from the earlier cases a complicated formula as to the meaning of “likely”. In my view, apart from the two issues of principle which present themselves and which I have sought to answer in this section of my judgment, the word itself presents no difficulties. Temptations to gloss the statutory language should be resisted. The jurisdictional threshold is not, I think, intended to be a high one. The real question is likely to be one of discretion, and answering the jurisdictional question in the affirmative is unlikely in itself to give the judge much of a steer as to the correct exercise of his power.

CPR r 31.16(3)(c): “duty by way of standard disclosure… would extend to the document”

74. Any dispute before the judge as to whether the duty of standard disclosure in any proceedings between [the would be claimant] and [the would be defendant] would extend to the documents which ultimately might become the subject matter of the judge's order was surmounted by the agreement that disclosure of such documents would be limited to standard disclosure. That agreement tended to obscure and perhaps to obliterate any argument as to whether any of the categories of documents requested were inherently outside the regime of standard disclosure.

75. In the circumstances it seems to me that no question of jurisdiction or principle can arise on this threshold in this case.

76. In general, however, it should in my judgment be remembered that the extent of standard disclosure cannot easily be discerned without clarity as to the issues which would arise once pleadings in the prospective litigation had been formulated. This court touched on the question in Bermuda International Securities Ltd v KPMG [2001] Lloyd's Rep PN 392, 397, para 26 when Waller LJ there said that:

“The circumstances spelt out by the rule show that it will ‘only’ be ordered where the court can say that the documents asked for will be documents that will have to be produced at the standard disclosure stage. It follows from that, that the court must be clear what the issues in the litigation are likely to be i e what case the claimant is likely to be making and what defence is likely to be being run so as to make sure the documents being asked for are ones which will adversely affect the case of one side or the other, or support the case of one side or the other.”

77. It also seems to me to follow that if there would be considerable doubt as to whether the disclosure stage would ever be reached, that is a matter which the court can and should take into account as a matter of its discretion.

78. In any event, all issues of discretion remain. The fact that the jurisdictional threshold under paragraph (3)(c) was dealt with by agreement tended, in my judgment, to obscure the necessity for clarity as to the issues in the prospective litigation. The importance of such clarity was illustrated in this appeal when the focus of submissions was turned from fraud onto anticompetitive conduct.

CPR r 31.16(3)(d): “desirabl” [SIC]

79. This is a difficult test to interpret, for it is framed both in terms of a jurisdictional threshold (“only where”) and in terms of the exercise of a discretionary judgment (“desirable”).

80. Three considerations are mentioned in paragraph (3)(d): disposing fairly of the anticipated proceedings; assisting the dispute to be resolved without proceedings; and saving costs. The first of this trio obviously contemplates the disposal of proceedings once they have been commenced - in that context the phrase “dispose fairly” is a familiar one (see e g RSC Ord 24, r 8); the second as clearly contemplates the possibility of avoiding the initiation of litigation altogether; the third is neutral between both of these possibilities.

81. It is plain not only that the test of “desirable” is one that easily merges into an exercise of discretion, but that the test of “dispose fairly” does so too. In the circumstances, it seems to me that it is necessary not to confuse the jurisdictional and the discretionary aspects of the paragraph as a whole. In Bermuda International Securities Ltd v KPMG [2001] Lloyd's Rep PN 392, 397, para 26 Waller LJ contemplated that paragraph (3)(d) may involve a two-stage process. I think that is correct. In my judgment, for jurisdictional purposes the court is only permitted to consider the granting of pre-action disclosure where there is a real prospect in principle of such an order being fair to the parties if litigation is commenced, or of assisting the parties to avoid litigation, or of saving costs in any event. If there is such a real prospect, then the court should go on to consider the question of discretion, which has to be considered on all the facts and not merely in principle but in detail.

82. Of course, since the questions of principle and of detail can merge into one another, it is not easy to keep the two stages of the process separate. Nor is it perhaps vital to do so, provided however that the court is aware of the need for both stages to be carried out. The danger, however, is that a court may be misled by the ease with which the jurisdictional threshold can be passed into thinking that it has thereby decided the question of discretion, when in truth it has not. This is a real danger because first, in very many if not most cases it will be possible to make a case for achieving one or other of the three purposes, and secondly, each of the three possibilities is in itself inherently desirable.

83. The point can be illustrated in a number of ways. For instance, suppose the jurisdictional test is met by the prospect that costs will be saved. That may well happen whenever there are reasonable hopes either that litigation can be avoided or that pre-action disclosure will assist in avoiding the need for pleadings to be amended after disclosure in the ordinary way. That alternative will occur in a very large number of cases. However, the crossing of the jurisdictional threshold on that basis tells you practically nothing about the broader and more particular discretionary aspects of the individual case or the ultimate exercise of discretion. For that, you need to know much more: if the case is a personal injury claim and the request is for medical records, it is easy to conclude that pre-action disclosure ought to be made; but if the action is a speculative commercial action and the disclosure sought is broad, a fortiori if it is ill-defined, it might be much harder.

84. In the present case, I think with respect that the judge fell into this error. Thus he dealt with paragraph (3)(d) in a single paragraph in which he decided that disclosure relating to the China deal and generally was desirable and should be made. He said that his reasoning or much of it was already dealt with under the heading of the “likelihood of proceedings”. There, however, he had in turn applied the wrong test; and even though in doing so he had considered matters which properly belonged to the question of discretion, by dealing with them for the different purpose of asking himself whether proceedings were likely, he was led into thinking that having decided that proceedings were likely, therefore pre-action disclosure should be made. That is demonstrated by his very next paragraph (headed “Discretion”) where he simply says that “It is clear from what I have said above that an order should be made…”

85. In effect, the judge never stood back, having dealt with the jurisdictional thresholds, and asked himself whether this was a case where his discretion should be exercised in favour of disclosure. It cannot be right to think that, wherever proceedings are likely between the parties to such an application and there is a real prospect of one of the purposes under paragraph (3)(d) being met, an order for disclosure should be made of documents which would in due course fall within standard disclosure. Otherwise an order for pre-action disclosure should be made in almost every dispute of any seriousness, irrespective of its context and detail. Whereas outside obvious examples such as medical records or their equivalent (as indicated by pre-action protocols) in certain other kinds of disputes, by and large the concept of disclosure being ordered at other than the normal time is presented as something differing from the normal, at any rate where the parties at the pre-action stage have been acting reasonably.

86. It is to be observed that because of the way in which he proceeded, the judge decided the question of discretion even before considering the breadth of the discovery requested or the allegation of oppression.' [bold to headings in original; otherwise, bold added]

[5] In Zhang v Mishcon de Reya LLP [2025] 4 WLUK 168, 

(1) jurisdictional requirements (a) and (b) were conceded (paragraph 43);

(2) jurisdictional requirements (c) and (d) were found not met (paragraphs 45 to 48);

(3) discretionary stage - in light of the jurisdictional requirements (c) and (d) being found not met, it was unnecessary for the Judge to proceed further and consider whether to exercise the discretion (paragraph 49). However, the Judge said, if he had, on the contrary, found that the jurisdictional requirements (c) and (d) were met, he would have refused to exercise his discretion in favour of granting the PAD application (paragraph 50). A flavour of why can be gleaned from paragraphs 51 to 55, but to assist: Mr Zhang threatened a claim for negligent misstatement against a firm of solicitors (MdR), and wanted disclosure of correspondence between the SRA and MdR, following SRA investigating the matter, following Mr Zhang's complaint about MdR's behaviour. 

'First, based on the evidence of Ms Phiri (behind which the court will not go in the context of a disclosure application), Mr Zhang now has all the relevant correspondence with the SRA which exists.

Second, in the absence of any evidence as to the totality of the documents available to Mr Zhang relating to the period from October 2016 to early 2017, I am unable to conclude that it would be in the interests of justice or further the overriding objective to make an order for pre-action disclosure.

Third, as I have already noted, pre-action disclosure orders are not the norm in the Commercial Court and there is nothing about this application which takes it out of the ordinary in such a way as to justify pre-action disclosure. The mere fact that the requested documents have been refused does not take the case out of the norm, nor does alleged wrongdoing in a different context (namely in the context of dealings with the SRA) have the effect of taking this case out of the norm.

Fourth, taking a broad view of the merits has led me to conclude that Mr Zhang faces significant obstacles establishing the merits of his claim. He faces significant obstacles in establishing that MdR owed him a duty of care. He faces significant obstacles establishing reliance in circumstances where his stated position in 2016 was that he did not believe anything he had been told by MdR. He also faces significant obstacles establishing causation. He has given no indication as to what he would have done if he had been told by MdR that they did not hold the funds, nor has he suggested that knowledge of this fact would have improved his prospects of recovering his money. Mr Zhang also faces significant obstacles dealing with the defence of limitation which has been raised by MdR. Fifth, it is not clear that the communications with the SRA would be discloseable in an action if it had been brought by Mr Zhang. It seems to me that this is an additional reason why I should refuse disclosure at this stage.

As regards the issue of privilege, now is not the time for the court to grapple with such issues. These issues are best dealt with as part of the case management stage of litigation against the background of the statements of case and all of the disclosure. It may be seen that this is an additional reason why the court should exercise its discretion against ordering preaction disclosure.'