Standstill Agreement Cowan

Earlier this year, the conflicting authorities of Bhusate/Patel [2019] EWHC 470 (Ch) and Cowan v Foreman et al [ 2019] EWHC 349 (Fam) expressed doubts about the application of status quo agreements with respect to claims, Section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (“Act”). As a result of the appeal`s decision in the latter case, this uncertainty is largely resolved. “I was told it was “practical” to accept such a dead end agreement. If this is a common practice, I suggest that it be a practice that should stop immediately. 3. The judge erred in proposing an end to the status quo agreements. Finally, the Tribunal found that negotiations between the parties should have been seen as a positive factor in granting the authorization. Regarding the application of status quo agreements to facilitate this, Lady Justice Asplin agreed with Mostyn J that they cannot bind the court, but stated that “without bias negotiations, rather than the issue of procedure should be encouraged”. In her judgment, Lady Justice King stated that status quo agreements would often be appropriate, particularly where the issuance of a right may make the prospect of an agreement more unlikely. It is customary for parties to a potential right to enter into outstanding agreements to extend or suspend the deadline, usually to allow time for negotiation in order to reach an agreement. “In any event, according to the judge, status quo agreements should not be a common practice and, in fact, the practice should “cease immediately.” He stated that if they wanted to agree on a moratorium on negotiations, the parties should nevertheless submit their application in a timely manner and ask the court to interpret the procedure and that it is not for the parties to give time that is in fact up to the court. An applicant must assert his right within the corresponding limitation period.

The length of the period in question depends on the nature of the law. However, it is customary for the parties to enter into status quo agreements in all possible disputes as a statute of limitations is approaching.

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