1 August 2025

How Private Is Your FDR? A Sacrosanct Warning from BC v BC

Is an FDR hearing truly sacrosanct? That’s the core question raised in BC v BC [2025] EWFC 236, a case that challenges the traditional shield of confidentiality that surrounds Financial Dispute Resolution (FDR) hearings.

Practitioners have long operated under the assumption that discussions at a private FDR are absolutely protected from later disclosure. But as BC v BC shows, even this “sacrosanct” zone may be pierced—when justice demands it.

The Background: A Dispute About Disclosure

Following a final hearing in financial remedy proceedings, one party in BC v BC sought to adduce material from the previous private FDR. This included:

  • Details of what had been offered or said at the FDR,
  • The tone and substance of the judge’s indications,
  • Written materials submitted for the FDR.

The opposing party objected, invoking the well-known principle that FDR hearings are off-limits—expressly confidential and protected from use in later litigation.

But the applicant argued that material from the FDR was necessary to:

  • Resolve questions about costs, and
  • Respond to representations made post-hearing that, it was claimed, mischaracterised what occurred during the FDR process.

FDR Confidentiality: Where We Stand

Under FPR 9.17(2), discussions at an FDR are “without prejudice”—they cannot be referred to in later proceedings. This rule aims to:

  • Encourage open, candid settlement talks,
  • Shield parties from their own tactical concessions being used against them,
  • Promote finality without fear.

The leading case of Clibbery v Allan [2002] EWCA Civ 45 and later authorities have affirmed that FDRs are quasi-privileged—not just confidential by practice but by rule.

So, how did the court square this with the request for disclosure?

What The Court Said in BC v BC

Mr Justice Mostyn reaffirmed the critical importance of FDR confidentiality, describing it as a "cornerstone" of the financial remedy system. However, he also acknowledged:

  • The tension between confidentiality and a party’s right to respond to unfair or misleading claims made outside court.
  • That once a party has referred to FDR discussions improperly, this may open the door to limited rebuttal disclosure.

This follows earlier dicta suggesting that confidentiality can be waived in narrow circumstances—particularly where it has already been breached by the other side.

The court struck a careful balance: most of the FDR material remained protected, but limited disclosure was allowed for the narrow purpose of correcting what had been said elsewhere.

Key Pointers for Practitioners

  1. FDRs remain highly protected, and parties should never assume they can refer to them freely.
  2. Courts may permit limited reference to FDR material—but only where necessary to correct misrepresentation or where one party has already breached confidentiality.
  3. Be extremely cautious in costs correspondence or post-hearing communications. If you hint at what occurred during the FDR, you may unintentionally waive privilege.
  4. Keep FDR notes and offers clearly marked as “without prejudice” and separate from open material.
  5. Remember that confidentiality is not absolute—it exists to serve justice, not to obstruct it.

Conclusion: Still Sacrosanct, But Not Untouchable

BC v BC is a rare but important case in the FDR landscape. It reminds us that while FDRs are shrouded in confidentiality, that shroud can be partially lifted when fairness demands it.

For family lawyers, the case serves as a reminder to:

  • Take care in post-FDR communications,
  • Avoid casual references to the content of those hearings,
  • And prepare clients for the possibility that in exceptional cases, the court may permit limited disclosure.

The “sacrosanct” principle lives on—but not without boundaries.

25 October 2024

The Importance of Financial Dispute Resolution in Family Law: Insights from GH v GH [2024] EWHC 2547 (Fam)

In the recent case of GH v GH [2024] EWHC 2547 (Fam), Mr. Justice Peel delivered a significant judgment that underscores the critical role of Financial Dispute Resolution (FDR) in family law proceedings. This case serves as a poignant reminder of why the FDR process should rarely be bypassed, even in complex financial remedy cases.

Background of the Case

The case involved an appeal against interim orders made during financial remedy proceedings. The central issue was the decision to dispense with the FDR and proceed directly to a final hearing. The appellant, referred to as the Wife (W), challenged this decision, arguing that the FDR process is essential for a fair and just resolution.

The Court’s Reasoning

Mr. Justice Peel’s judgment provides a detailed analysis of the circumstances under which an FDR can be dispensed with, as outlined in FPR 9.15(4)(b). The rule states that a case must be referred to an FDR appointment unless there are “exceptional reasons” making such a referral inappropriate. In this case, the initial judge had decided to bypass the FDR due to ongoing factual disputes about the Wife’s earning capacity and the lack of crystallisation of her position.

However, Mr. Justice Peel emphasised that these reasons were insufficient to justify dispensing with the FDR. He highlighted that the FDR process is designed to handle such complexities and disputes. The FDR judge can provide an independent evaluation of the likely outcome, helping parties understand the risks and benefits of continued litigation.

The Value of FDR

The judgment reiterates the value of the FDR process in family law. Mr. Justice Peel noted that the FDR’s without prejudice status allows the judge to look beyond litigation posturing and give clear, robust views. This process often facilitates settlements, even in the most intractable cases. The FDR judge’s role is to provide a realistic assessment of the case, which can be instrumental in guiding parties towards a resolution.

Exceptional Circumstances

Mr. Justice Peel acknowledged that there might be rare situations where an FDR could be dispensed with, such as when one party has not engaged at all or has explicitly stated they will not attend the FDR. However, these situations are few and far between. In the case of GH v GH, the judge found no such exceptional circumstances. The essential facts and resources were clear, and there was no impediment to the parties making offers or the court giving a firm steer.

Conclusion

The judgment in GH v GH [2024] EWHC 2547 (Fam) serves as a crucial reminder of the importance of the FDR process in family law. It underscores that the FDR should not be bypassed lightly, as it plays a vital role in facilitating settlements and providing a realistic assessment of the case. This case highlights the judiciary’s commitment to ensuring that the FDR process remains a cornerstone of financial remedy proceedings, promoting fair and just outcomes for all parties involved.

For family law practitioners, this judgment reinforces the need to advocate for the FDR process and to recognise its value in resolving disputes efficiently and effectively. It also serves as a guide for judges in assessing whether exceptional circumstances truly warrant dispensing with the FDR, ensuring that this critical step in the legal process is preserved.

16 July 2024

A Comprehensive Guide to Financial Remedy Proceedings: From Start to Finish

Financial remedy proceedings in family law cases involve several phases, each with its own set of activities and deadlines. Here's a detailed overview of the process, broken down into three main phases:

Phase 1: From Issue of Proceedings to the First Directions Appointment (FDA)

Either party initiates the proceedings by filing a FORM A (financial remedy) or alternatives, along with necessary details and confirmations.
The court sets a timetable leading up to the First Appointment, including deadlines for financial disclosure, property appraisals, and questionnaire filings.

• 35 days before First Appointment - Each party to file and serve Forms E
• 14 Days before First Appointment - The parties to notify the court if they intend to use First Appointment as FDR
• 14 Days before First Appointment - The applicant to file a joint market appraisal of the family home (or each party to file separate market appraisals, with explanation)
• 14 Days before First Appointment - Each party to file and serve 3 property particulars for themselves and the other party
• 14 Days before First Appointment - The parties to file joint indicative material as to their respective mortgage capacities
• 14 Days before First Appointment - Each party to file and serve a maximum 4-page questionnaire
• 14 Days before First Appointment - The applicant to file confirmation of service on mortgagees/trustees, etc
• 2 days before First Appointment - The applicant to file the court bundle (limited to 350 pages)
• 1 day before First Appointment - The applicant to file Forms ES1 and ES2
• 1 day before First Appointment - Each party to file and serve a maximum 6-page Position Statement
• 1 day before First Appointment - Each party to file and serve Form H – But if a party is seeking a costs order from their opponent, then they must file and serve a Costs Schedule at least 24 hours before the FA hearing.

At the FDA, the court gives directions for the case's progression, including expert evidence and potential alternative dispute resolution options.

Phase 2: From the First Appointment to the Financial Dispute Resolution Hearing (FDR)

Parties comply with the directions set at the FDA, with deadlines for filing forms, court bundles, and position statements.
The FDR serves as a negotiation meeting, conducted off the record and without prejudice. Parties are encouraged to make offers and consider responses.
If no settlement is reached at the FDR, the court lists the matter for a Final Hearing and provides further directions as necessary.
The standard directions provide as follows:

7 days before FDR - The applicant to file Forms ES1, ES2 and composite chronology
2 days before FDR - The applicant to file the court bundle (limited to 350 pages)
1 day before FDR - Each party to file and serve Form H
1 day before FDR - Each party to file and serve a maximum 12-page Position Statement

The Financial Dispute Resolution Hearing (FDR)

The ground rules for the hearing are well established. It is a ‘meeting for the purposes of discussion and negotiation’ – Rose v Rose [2002] 1 FLR 978. The parties are expected to be open minded in their approach, and to make offers and consider sensibly any responses. The entire hearing is conducted off the record and is ‘without prejudice‘. As such any papers filed including offers and counter offers are removed from the court file if the case does not settle. Furthermore, the Judge hearing the FDR is not permitted to preside over the final hearing in due course. If no settlement is achieved at FDR, the court will list the matter for a Final Hearing and give whatever further directions may be appropriate to ready the case for the final hearing.

Phase 3: Up to and Including the Final Hearing

• 21 days after FDR - Each party to file and serve open proposals
• 14 days before final hearing - The applicant to file and serve a statement of orders sought
• 14 days before final hearing - Each party to file and serve a Form H1
• 7 days before final hearing - The respondent to file and serve statement of orders sought
• 7 days before final hearing - The applicant to file Forms ES1, ES2 and composite chronology
• 2 days before final hearing - The applicant to file the court bundle (limited to 350 pages)
• 1 day before final hearing - Each party to file and serve a maximum 15-page Position Statement

The parties must again comply with any outstanding directions. A full Schedule of Costs on FORM H1 is required – which is more detailed than the Form H filed at previous stages.

Parties file open proposals and statements of orders sought, along with updated court bundles and position statements.

Pre-trial reviews may occur approximately 28 days before the final hearing, if judicial resources permit.

At the final hearing, parties present evidence, face cross-examination, and make closing submissions before the judge makes their decision and issues the final order. The parties submit themselves to the mercy of the presiding Judge. The Judge will hear evidence from both parties who will face questions and cross examination in the witness box. Any experts whose evidence is challenged are also likely to face cross examination, before the respective parties’ advocates make closing submissions and the Judge makes their findings and decision and ultimately the final order.

Conclusion

Following the outlined framework and deadlines is essential in financial remedy proceedings to avoid penalties and ensure a smooth legal process. While cases may vary in complexity and duration, adherence to these guidelines is crucial for a successful outcome and favourable impression with the court throughout the proceedings.

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