Default Judgment

Question 1

What CPR provision governs applications for default judgment?

Answer 1

CPR Part 12

Question 2

What must the claimant satisfy the court of when bringing their request for default judgment?

Answer 2

They must satisfy the court that:

1. The particulars of claim have been served upon the defendant; and
2. The defendant has not filed an acknowledgement of service form or a defence within the relevant time period.

Question 3

What are the differences in what a claimant must specify in their application for default judgment of a specified sum vs an unspecified sum?

Answer 3

When applying for default judgment for a specified sum, the claimant must:

1. Indicate the date payment was due;
2. calculate an up-to-date total for the interest claimed; and
3. State a daily rate at which interest accrues.

When applying for default judgment for an unspecified sum, the claimant will not need to give these numbers as, if default judgment is granted, the case will need to come back before the court to decide the amount of damages payable.

Question 4

Once a final judgment has been entered, when will payment usually be required?

Answer 4

Within 14 days of the final judgment.

Question 5

What CPR provision governs applications to set aside default judgment?

Answer 5

CPR Part 13

Question 6

What is the mandatory ground for setting aside default judgment?

Answer 6

The court is obliged to set aside a default judgment if it was wrongly entered.

Example: Judgment had been entered too early, before the time for filing an acknowledgment of service or a defence expired.

Question 7

What are the discretionary grounds for setting aside default judgment?

Answer 7

Court has power to set aside a default judgment where the defendant:

1. Has a REAL prospect of successfully defending the claim
2. There is some other good reason why the defendant should be allowed to defend the claim

Question 8

Are there any time limits on a defendant applying to set aside default judgment?

Answer 8

No strict time limit.

However, defendant must apply promptly; defendant should issue their application as soon as they become aware of the default judgment to comply with the overriding objective.

Question 9

What are the potential orders that a judge can make regarding an application to set aside default judgment?

Answer 9

The potential orders are:

1. The defendant succeeds and the judgment is set aside, allowing them to continue to defend the action.
2. The claimant succeeds, and the judgment remains in place, so they may proceed to enforcement.
3. A conditional order is made, namely, the judgment is set aside on the condition that the defendant pays monies into the court, for example, the amount of the claim.

Question 10

Who pays the costs if default judgment is set aside on the mandatory ground?

Answer 10

The claimant will pay the costs as they were at fault for entering default judgment wrongly.

Question 11

Who pays the costs if default judgment is set aside on the discretionary grounds?

Answer 11

Where the defendant establishes the ground of a good reason for the default, costs are usually in the case as neither party is at fault.

Where the defendant only establishes the discretionary ground of a defence with a real prospect of success at trial, the defendant is at fault for failing (initially) to deal with the proceedings, and so will pay the costs.