Topic 7 - Early disposal and Interim Applications

Question 1

What is default judgment?

Answer 1

Default judgment means applying for judgment to be granted in the claimant’s favour without a trial if the defendant has not responded to the claim by either serving an acknowledgment of service or a defence within the prescribed time limits (CPR 12.1)

Also referred to as judgment in default.

Question 2

What are the main Civil Procedure Rules (CPR) related to default judgment?

Answer 2

• CPR 12 - Default judgment
• CPR 13 - Setting aside a default judgment

Question 3

What must the claimant show to obtain default judgment?

Answer 3

• Time has expired for filing an acknowledgment of service or a defence
• The claim has not been admitted or satisfied by the defendant
• No application for summary judgment or strike out has been made

Question 4

What is the difference between default judgment and strike out?

Answer 4

Strike out focuses on a statement of case, while default judgment covers cases where the defendant has failed to respond to the claim.

Question 5

What is the difference between default judgment and summary judgment?

Answer 5

Default judgment is procedural and occurs when a defendant fails to respond, while summary judgment involves the court considering the merits of a weak case.

Question 6

What is the procedure for obtaining default judgment for money claims of a specified sum?

Answer 6

The claimant may file a REQUEST for judgment on the specified form and the application will be dealt with on paper.

Question 7

What can a claimant request in a default judgment for non-money claims?

Answer 7

The claimant must APPLY for a default judgment hearing to explain why default judgment should be granted.

Question 8

What conditions must be met for a default judgment to include interest?

Answer 8

• The particulars of claim include details of the interest
• The rate is no higher than the rate of interest payable on judgment debts
• The claimant’s request includes a calculation of the interest

Question 9

Can a claimant obtain a default judgment against one of multiple defendants?

Answer 9

Yes, if the claim can be dealt with separately from the other defendants.

Question 10

Under what circumstances can a default judgment be set aside?

Answer 10

• If judgment was wrongly entered
• If judgment was correctly entered but the court may exercise its discretion

Question 11

What are the reasons the court must set aside a default judgment?

Answer 11

• Time limit for acknowledging service has not expired
• An acknowledgment of service or defence was filed on time
• Summary judgment or strike out was applied for before judgment
• The defendant satisfied the claim before judgment

Question 12

What is required for a court to exercise its discretion to set aside a default judgment?

Answer 12

The defendant must show a real prospect of successfully defending the claim or provide some other good reason.

Question 13

What is the significance of delay in setting aside default judgment?

Answer 13

The court considers how promptly the defendant made the application to set the judgment aside.

Question 14

What are interim applications?

Answer 14

Applications for orders or directions made to the court during the interim period between the commencement of proceedings and trial.

Question 15

What are some examples of interim applications?

Answer 15

• Extending the time period for filing a defence
• Applying to amend a statement of case
• Requesting specific disclosure of a document

Question 16

What is the procedure for making an interim application?

Answer 16

The applicant files an application notice (Form N244) at court, stating who is making the application, the order sought, and the supporting information.

Question 17

What must be served on the other party after an interim application is issued?

Answer 17

• Application notice
• Supporting evidence
• Draft order
• Notice of hearing date

Question 18

How soon must the application be served after being filed?

Answer 18

As soon as practicable and not less than three clear days before the application is to be heard.

Question 19

What is required from the respondent after an interim application is made?

Answer 19

The respondent may file evidence in response as soon as possible and in accordance with any specific timings set by the court.

Question 20

What is a without notice application?

Answer 20

An application made without serving the application notice on the respondent, permitted only under specific circumstances.

Question 21

What are the conditions under which a without notice application can be made?

Answer 21

• Exceptional urgency
• Overriding objective best furthered by doing so
• All parties consent
• Court permission granted

Question 22

What is the ‘with notice’ procedure?

Answer 22

The respondent is served with the application before the hearing, allowing them to file evidence in response and attend a hearing.

Question 23

What is the ‘without notice’ procedure?

Answer 23

An application made without serving the application notice on the respondent, permitted only under specific conditions.

Question 24

List the conditions that allow a ‘without notice’ application.

Answer 24

• Exceptional urgency
• Overriding objective is best furthered
• All parties consent
• Court permission
• Court order, rule, or practice direction permits
• Hearing date fixed and insufficient time to serve notice

Question 25

What must an application 'without notice' explain?

Answer 25

Why no notice is given and must highlight arguments and evidence supporting the absent respondent's position.

Question 26

What documents must be served on the respondent after a 'without notice' hearing?

Answer 26

* Application notice * Evidence in support * Court order

Question 27

What must the court order contain regarding the respondent's rights?

Answer 27

A statement of the respondent's right to make an application to set aside or vary the order.

Question 28

What is the time limit for an application to set aside a court order?

Answer 28

7 days from the order being served on the other party.

Question 29

What is the purpose of summary judgment?

Answer 29

To enable the court to dispose of claims or issues without the need for a full trial.

Question 30

What is the effect of granting summary judgment on an issue?

Answer 30

The issue is no longer considered at trial, saving costs.

Question 31

Who can apply for summary judgment?

Answer 31

Either party can apply if they consider the other party's position is sufficiently weak.

Question 32

What is the difference between summary judgment and strike out?

Answer 32

Strike out removes claims with no reasonable grounds, while summary judgment dismisses claims where there is no real prospect of success.

Question 33

What is the difference between summary judgment and default judgment?

Answer 33

Default judgment occurs when a defendant fails to respond, while summary judgment assesses the merits of the case.

Question 34

What grounds must be established for summary judgment?

Answer 34

* Claimant has no real prospect of succeeding * Defendant has no real prospect of successfully defending * No other compelling reason for trial

Question 35

What does 'no real prospect' mean?

Answer 35

The position is fanciful, imaginary, or false; a respondent needs only show some chance of success.

Question 36

Examples of compelling reasons for trial include?

Answer 36

* Defendant needs more time to investigate * Expert evidence is required * Multi-party litigation * Scrutiny of key documents required * Right to trial by jury

Question 37

What evidence is required for a summary judgment application?

Answer 37

Must address the grounds for summary judgment and include a statement of reliance on evidence.

Question 38

When can the claimant apply for summary judgment?

Answer 38

After the defendant has filed an acknowledgement of service or defence, or earlier with court permission.

Question 39

What is the effect of a summary judgment application on proceedings?

Answer 39

Creates a pause in proceedings while the application is decided.

Question 40

What is an interim payment?

Answer 40

A payment on account of damages that a defendant may be liable to pay to a claimant.

Question 41

What conditions must be satisfied for an interim payment?

Answer 41

* Defendant admitted liability * Claimant obtained judgment for damages * Likelihood of substantial judgment for claimant

Question 42

What must the applicant provide as evidence for an interim payment?

Answer 42

* Reasons for believing conditions are satisfied * Likely final judgment amount * Amount sought for interim payment * Relevant details of the claim

Question 43

What is security for costs?

Answer 43

An application by a defendant concerned that the claimant may not pay costs if the claim is defended successfully.

Question 44

What are the grounds for applying for security for costs?

Answer 44

* Just to make an order * One or more prescribed conditions are satisfied

Question 45

What are some prescribed conditions for security for costs?

Answer 45

* Claimant is resident out of jurisdiction * Claimant is a company likely unable to pay costs * Claimant has taken steps making enforcement difficult

Question 46

What is the purpose of security for costs?

Answer 46

To ensure that a defendant has a means of recovering costs if a claimant is unable to pay ## Footnote Security for costs is relevant in cases where there are concerns about the claimant's financial ability to pay the defendant's costs if ordered.

Question 47

What does CPR 25.13(2)(c) state regarding the defendant's costs?

Answer 47

The claimant must be ordered to pay the defendant’s costs if applicable ## Footnote This is part of the rules governing security for costs.

Question 48

What does it mean if a claimant is 'impecunious'?

Answer 48

The claimant is unable to pay the defendant’s costs if ordered to do so ## Footnote This term applies specifically to companies in the context of CPR 25.13(2)(c).

Question 49

What condition does CPR 25.13(2)(g) address?

Answer 49

The claimant has taken steps regarding its assets that make enforcing a costs order difficult ## Footnote This applies, for example, to the dissipation of assets.

Question 50

What is the 'out of the jurisdiction' condition?

Answer 50

The claimant is resident outside England and Wales and not in a State bound by the 2005 Hague Convention ## Footnote This condition raises concerns about the enforcement of costs orders.

Question 51

Define 'resident' for an individual and a company.

Answer 51

For an individual, it is their habitual or normal residence; for a company, it is where central management and control is exercised ## Footnote This is relevant for determining the jurisdiction under CPR 25.13.

Question 52

What factors does the court consider when granting security for costs?

Answer 52

The ability of the respondent to comply with the order and any other relevant circumstances ## Footnote This includes considerations like admission of liability and delay.

Question 53

What is an interim injunction?

Answer 53

A temporary court order restraining a party from certain actions until a final decision is made ## Footnote It is typically issued in urgent situations.

Question 54

What are the two main types of interim injunctions?

Answer 54

Prohibitory injunction and mandatory injunction ## Footnote Prohibitory injunctions prevent actions, while mandatory injunctions require specific actions.

Question 55

What are the 'American Cyanamid guidelines'?

Answer 55

Guidelines for granting interim injunctions that include assessing serious questions, adequacy of damages, and balance of convenience ## Footnote Established in the case American Cyanamid Co v Ethicon Ltd [1975].

Question 56

What is required for an application for an interim injunction?

Answer 56

It must be supported by written evidence justifying the relief sought ## Footnote This includes demonstrating urgency and the facts of the case.

Question 57

What does the term 'cross-undertaking in damages' refer to?

Answer 57

An undertaking by the applicant to compensate the respondent for losses incurred due to an injunction if it is later found to be unjustified ## Footnote This protects the respondent's interests.

Question 58

What must be disclosed in a without notice application for an interim injunction?

Answer 58

All matters of fact or law relevant to the application, including those adverse to the applicant ## Footnote Full and frank disclosure is crucial to maintain the court's trust.

Question 59

What does CPR 25.2(2)(b) state regarding applications before a claim is issued?

Answer 59

An interim injunction can be applied for before a claim form is issued if it is urgent or in the interests of justice ## Footnote This allows for immediate legal protection in urgent cases.

Question 60

What is meant by 'balance of convenience' in granting an injunction?

Answer 60

The assessment of which party would suffer less harm from granting or denying the injunction ## Footnote This is a key consideration in the American Cyanamid guidelines.

Question 61

What does 'impecunious claimant company' condition require?

Answer 61

The defendant must show the claimant company will be unable to pay costs ordered against it ## Footnote This is determined based on evidence of the company's financial situation.

Question 62

What happens if a claimant fails to comply with a security for costs order?

Answer 62

Their claim may be stayed or dismissed ## Footnote This is to ensure that the defendant's right to recover costs is protected.

Question 63

What is the typical outcome if a defendant delays in applying for security for costs?

Answer 63

The application is less likely to succeed ## Footnote Promptness is crucial in such applications.