What is Private FDR?

A Private FDR mirrors the FDR hearing which takes place in the court system prior to a final hearing. In each instance, it will be necessary for the parties to have as much information as possible about the financial landscape following a first hearing known as the First Directions Appointment and for proposals to have been exchanged.

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The second hearing or FDR is a without prejudice hearing focused on settlement. This means that any offers or concessions made at the hearing cannot later to be brought to the court’s attention. Parties can therefore negotiate freely without being worried that any concessions they are prepared to make can be used against them later if a settlement is not achieved.

 

The person conducting the FDR hears a presentation of each sides case and then gives an indication or ‘early neutral evaluation’ of the likely outcome if the case were to proceed to a final hearing. This can then inform the parties’ negotiations. The parties do not give evidence.

An indication given at an FDR is in no way binding upon the parties nor is it possible for any solution to be imposed. At best, an agreement can be achieved which can be converted into a consent order which is then sent the court for approval; at worst, the case must proceed to a final hearing in court.

 

The majority of cases settle at or shortly after an FDR simply because of the savings achievable in both time and money not to mention the certainty and sense of relief that a settlement brings. There can be no certainty of outcome at a final hearing in what is after all a discretionary system. What can, however, be said for certain is that there will be delay and increased costs if a case proceeds to a final hearing.

The court will be prepared to adjourn a case for a Private FDR to take place listing it for a short hearing after the date agreed for the Private FDR, when hopefully a consent order can be approved.