CPR 20 Deals with the Procedure Relating to 'Additional Claims

question 4

Multiple Choice

CPR 20 deals with the procedure relating to 'Additional Claims' that are conveniently dealt with within the main action between the claimant and the defendant. This may include an additional claim made by the defendant against the claimant or against another person. When the additional claim is against another person (that is not the claimant) what course of action can the defendant follow?

• A) The defendant can make the additional claim against the other party without the permission of the court but the court will consider what directions it will make now that another party is involved in the action.
• B) The defendant can make the additional claim against the other party at the same time as filing his defence to the action without the permission of the court and on file DQs the court will consider what directions it will make now that another party is involved in the action.
• C) A defendant can make an additional claim against the claimant without the permission of the court when he files his defence but must seek the permission of the court if he wishes to make a claim against another person.
• D) A defendant must always seek the permission of the court if he wishes to make allegations against either the claimant or another party.

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Definitions:

Additional Paid-in Capital

The amount of capital that is paid by investors above the par value of the stock during equity issuance.

Contributed Capital

The amount of money that shareholders have invested in a company through the purchase of its stock.

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Stock Dividends

Dividends paid to shareholders in the form of additional shares of stock instead of cash.