Understanding Default Judgment in Civil Court | What You Need to Know
A ‘Default Judgement’ is common in commercial litigation disputes and serves to ensure that legal proceedings move forward even when one side is unresponsive.
If a defendant receives civil proceedings properly served and does not, within the time limits set down by the Civil Procedure Rules 1998 (‘CPR’), to file an ‘Acknowledgement of Service’ or ‘Defence’, or any document intended to serve as a ‘Defence’, the court may, upon application by the claimant, issue a ‘Default Judgment’ against the defendant.
This administrative procedure provides a ruling on a claim without a trial and represents an early determination, based on the defendant's failure to respond and removes the need for a court hearing.
Successfully obtaining a default judgment offers significant benefits for any claimant as it reduces legal costs, saves the time involved in preparing the claim, minimises uncertainty with a more predictable outcome, and greatly reduces the overall duration of the process.
Stuart Southall of KANGS outlines the general procedure of obtaining a default judgment.
The Relevant Law
Obtaining a default judgment
The CPR state:
‘Meaning of ‘’default judgment’’
12.1 In these Rules, ‘default judgment’ means judgment without trial where a defendant
(a) has failed to file an acknowledgment of service; or
(b) has failed to file a defence or any document intended to be a defence.’
The CPR state at 12.2 that a claimant may not obtain default judgment-
(a) on a claim for delivery of goods subject to an agreement regulated by the Consumer Credit Act 1974;
(b) where they use the procedure set out in Part 8 (alternative procedure for claims); or
(c) in any other case where a rule or practice direction says that the claimant may not obtain default judgment.’
Conditions to be satisfied
Whilst CPR 12.1 may appear to make the obtaining of a default judgment a formality, any application will need to have regard to CPR 12.3 as follows.
12.3 (1) The claimant may obtain judgment in default of an acknowledgment of service only if at the date on which judgment is entered
(a) the defendant has not filed an acknowledgment of service or a defence to the claim (or any part of the claim); and
(b) the relevant time for doing so has expired.
(2) Judgment in default of defence (or any document intended to be a defence) may be obtained only
(a) where an acknowledgement of service has been filed but, at the date on which judgment is entered, a defence has not been filed;
(3) The claimant may not obtain a default judgment if at the time the court is considering the issue
(a) the defendant has applied
(i) to have the claimant’s statement of case struck out under rule 3.4; or
(ii) for summary judgment under Part 24,
and, in either case, that application has not been dealt with;
(b) the defendant has satisfied the whole claim (including any claim for costs) on which the claimant is seeking judgment;
(c)
(i) the claimant is seeking judgment on a claim for money; and
(ii) the defendant has admitted liability to pay all the money claimed but has requested time to pay; or
(d) notice has been given under rule 82.21 of a person’s intention to make an application for a declaration under section 6 of the Justice and Security Act 2013(2) in relation to the proceedings, and that application has not been dealt with.’
CPR 1.1 The Overriding Objective
The default judgment procedure enables the court to utilise its Case Management powers as outlined in CPR Part 1.1 the Overriding Objective which provides, amongst other things:
(1) These Rules are a procedural code with the overriding objective of enabling the court to deal with cases justly and at proportionate cost.
(2) Dealing with a case justly and at proportionate cost includes, so far as is practicable –
(a) ensuring that the parties are on an equal footing and can participate fully in proceedings, and that parties and witnesses can give their best evidence;
(b) saving expense;
(c) dealing with the case in ways which are proportionate
(i) to the amount of money involved;
(ii) to the importance of the case;
(iii) to the complexity of the issues; and
(iv) to the financial position of each party;
(d) ensuring that it is dealt with expeditiously and fairly;’
How Can We Assist?
As with any detailed court process, when seeking a Default Judgment, it is essential to consider all relevant exclusions and processes to ensure the claimant remains compliant with the CPR. Failure to do so may result in the claimant incurring unnecessary costs, such as those of the defaulting party, which they may have to discharge.
If you are facing a potential Default Judgment or need guidance on how to respond to a legal claim, our team of experienced solicitors is here to help. Default Judgments can have serious consequences, but with the right legal support, you can explore options to protect your rights and seek a fair outcome.
The team at KANGS have a wealth of experience advising and assisting clients engaged in commercial disputes of every nature, whether seeking to enforce their rights or defending proceedings commenced against them.
Should you require assistance, please do not hesitate to contact a member of our team using the details below:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through live conferencing or telephone.
Top ranked by leading legal directories Chambers UK and the Legal 500.
