How to set aside a Default Judgment
by Matthew Whipp
What is a default judgment?
Default judgment is where the Court decides a claim early because you have failed to acknowledge or defend the claim within the appropriate time limit. It is judgment by administrative act rather than by considering the actual merits of the claim (as would happen at trial).
Why did I receive a default judgment?
If you have received a default judgment it can be a very worrying experience. Often, when you receive a default judgment, it is the first time you have been made aware of legal proceedings against you.
This can happen for any number of reasons, including the Claimant writing to you at the wrong address or while you are away on holiday or in the hospital.
When the Claimant does not receive a response to the letter before claim or the subsequent claim form and particulars of claim, they can apply to the Court for default judgment against you.
What are the consequences of getting a default judgment against me or my business?
If the Court grants default judgment against you or against your business, then the default judgment will be added to the Register of Judgments, Orders and Fines, which is a public and searchable register where it will remain for six years from the date of judgment (unless the judgment debt is paid within one month or the judgment is set aside).
If a default judgment against you or your business is added to the Register of Judgments, Orders and Fines, then you may be faced with enforcement action (e.g. via bailiffs) to collect the money owed and/or there may be doubts about your creditworthiness due to being listed on the Register of Judgments, Orders and Fines.
It is therefore important to apply promptly to set aside a default judgment.
How can I set aside a default judgment?
To set aside a default judgment, you would need to apply to Court for the default judgment to be set aside.
There are essentially two reasons for the Court to set aside default judgment that are detailed in the Civil Procedure Rules (CPR), namely:
- Where a default judgment has been “wrongly entered”, the Court “must” (under CPR 13.2) set aside that default judgment; and
- Where a default judgment has not been “wrongly entered”, the Court “may” (under CPR 13.3) decide to set aside that default judgment if there is a good reason to do so.
How do I know if a default judgment has been “wrongly entered”?
A default judgment is “wrongly entered” (under CPR 13.2) if:
- You did file an Acknowledgment of Service in time;
- You did file a Defence in time; or
- You have satisfied the whole of the claim (for example, by paying all the money owed) before default judgment was given.
If the default judgment was “wrongly entered”, then you can apply for the Court to set aside the default judgment and the Court must set aside that default judgment.
What do I do if the default judgment was not “wrongly entered”?
If the default judgment was not “wrongly entered”, then the Court may set aside that default judgment under CPR 13.3 if you can demonstrate that there is a good reason to set aside, such as:
- You have a real prospect of successfully defending the claim; or
- There is some other good reason why:
a. The Court should set aside the Default Judgment; or
b. You should be allowed to defend the claim.
It is important to remember that – if the default judgment was not “wrongly entered” – the Courts will look favourably on the promptness of your application to set aside default judgment, so you should ensure that you submit your application as soon as possible.
How can I avoid default judgments being entered against me or my business in future?
- It’s a good idea to ask somebody you trust to open your post daily in your absence at both your residential address and business address to avoid missing any crucial letters.
- Make sure you respond within the time limits set by the court, speak to a solicitor about the claim, and seek advice on what steps you should take next.
- Ensure any response to the claim form is sent to the correct address, which can be found on the claim form. It’s good practice to keep a copy of any responses you send to the court, including proof of postage. If for any reason your responses are mislaid by the court, this paper trail can act as your evidence that you responded to the claim on time.
- It is also good practice to keep a record of any oral or written correspondence you may have with the claimant or their solicitors.
How can Lennons help me?
At Lennons we understand that this can be a daunting time for you. Please get in touch with one of our solicitors who would be happy to discuss your matter further. You can call us on 01494 773377, get in touch by email to hello@lennonssolicitors.co.uk, live chat, or by completing our free online enquiry form below.
DISCLAIMER: The content of this article has been prepared for informational purposes only. This content does not constitute legal advice, nor does it give rise to a solicitor/client relationship. Specialist legal advice should be taken in relation to specific circumstances.