Early Disposal - Default Judgement

Question 1

What is a default judgment?

Answer 1

A judgment entered in the claimant’s favour without a trial if the defendant fails to respond to the claim in time by filing an acknowledgment of service or defence

Question 2

In which types of claims is default judgment not available?

Answer 2

• Claims under the Consumer Credit Act 1974
• Part 8 claims
• Any other claim excluded by a Practice Direction

Question 3

What are the conditions for obtaining default judgment?

Answer 3

• Defendant has failed to file acknowledgment of service or defence
• Time to respond has expired
• No admission, satisfaction, or application for summary judgment/strike out

Question 4

What is the difference between default judgment and strike out?

Answer 4

Strike out is based on the contents of a statement of case; default judgment is procedural and triggered by failure to respond.

Question 5

What is the difference between default judgment and summary judgment?

Answer 5

Default judgment is based on non-response; summary judgment is based on the merits of the case.

Question 6

What is the procedure for obtaining default judgment in a claim for a specified sum?

Answer 6

The claimant files a request for judgment; the court enters judgment administratively on paper

Question 7

What is the procedure for default judgment in an unspecified sum claim?

Answer 7

The claimant requests judgment; the court enters judgment and fixes a hearing to assess quantum

Question 8

What is the procedure for non-money claims?

Answer 8

The claimant must apply for judgment; the court decides whether to grant judgment at a hearing.

Question 9

When can interest be included in a default judgment?

Answer 9

• If stated in the particulars of claim
• Interest rate does not exceed judgment rate
• Request includes a calculation to the date of judgment

Question 10

Can default judgment be obtained against one of several defendants?

Answer 10

Yes, if the claim can be dealt with separately. If not, judgment may be delayed until all claims are resolved.

Question 11

What are the two categories of applications to set aside default judgment?

Answer 11

• Where the court must set aside
• Where the court may set aside

Question 12

When must the court set aside a default judgment?

Answer 12

• If judgment was entered in error
• E.g. defence or acknowledgment was filed on time, or judgment obtained after payment

Question 13

When may the court set aside a default judgment?

Answer 13

• If the defendant has a real prospect of successfully defending the claim
• Or there is another good reason for setting it aside

Question 14

What is meant by a ‘real prospect of success’?

Answer 14

The defence must be more than arguable; it must have genuine merit but the court must not conduct a mini-trial.

Question 15

What are examples of ‘other good reason’?

Answer 15

• Claimant misled the defendant into thinking no claim would be brought
• Claimant failed to serve the response pack
• The claim raises public interest issues

Question 16

What must the court consider when deciding to set aside?

Answer 16

• Whether the application was made promptly
• The overriding objective
• Denton principles

Question 17

What are the Denton principles?

Answer 17

1. Assess the seriousness of the breach
2. Consider reasons for the breach
3. Evaluate all circumstances to deal justly with the case

Question 18

What is the procedural requirement for CPR 13.3 (Setting Aside) applications?

Answer 18

• The application must be supported by evidence
• Any delay must be justified

Question 19

Can the court attach conditions when setting aside?

Answer 19

Yes—for example, requiring the defendant to pay the claimant’s costs.