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How Can Defendants Set Aside A Default Judgment?

Table of Contents

In Short

  • A default judgment is made when a defendant does not respond to a claim in time and the court decides the case without their input.

  • Defendants can apply to set aside the judgment if they act quickly and have a valid reason.

  • The court may agree to set it aside depending on the circumstances and strength of the defence.

Tips for Businesses

If your business is hit with a default judgment, act fast. Explain the delay, show you have a solid defence and let the claimant know you intend to apply. Getting legal advice early can improve your chances of having the judgment set aside.

If your business is facing a default judgment, you may wonder whether you can set it aside. A default judgment is when the courts make an automatic decision about a claim because the defendant has failed to respond within the allocated timeframes. If you receive a default judgment, you must act promptly. This article explains what a default judgment is and how you can set aside a default judgment. 

What is a Default Judgment?

A default judgment is when the courts make an automatic decision about a claim because the party defending a claim has failed to file:

  • an acknowledgement of service of the claim; or 
  • a defence of the claim within the timeframes set out in the Civil Procedure Rules. 

As a result, the court will not hear any evidence or arguments from the defendant. Commonly, claimants obtain a default judgment for debt claims against a defendant. This means you should:

  • comply with the judgment by paying the sum demanded; or 
  • apply to vary the judgment’s terms if you cannot afford to pay. 

Alternatively, if you disagree with the default judgment and wish to have it reversed, you can apply to set it aside. 

To avoid lengthy and expensive disputes, it’s important to have up-to-date legal contracts in place. Our contract lawyers can review and update your contracts to ensure your business is protected. Book a complimentary consultation today by filling out the form on this page.

Grounds for Setting Aside a Default Judgment

Mandatory Grounds

According to Part 13 of the Civil Procedure Rules, the court must set aside a default judgment if any of the following conditions are met:

  • the defendant filed an acknowledgement of service within the prescribed timeframe;
  • the defendant has an outstanding application that has not been addressed, specifically:
    • an application to strike out the claimant’s statement of case under rule 3.4; or
    • an application for summary judgment under Part 24;
  • the defendant has fully satisfied the claim, including any costs, for which the claimant was seeking judgment (but the judgment was entered regardless); or
  • in cases where the claimant sought judgment on a monetary claim, the:
    • defendant admitted liability for the full amount claimed; 
    • defendant requested time to pay; but
    • judgment was entered despite this admission and request.

Discretionary Grounds

Part 13 also outlines circumstances where the court has discretion to set aside a default judgment:

  1. the defendant demonstrates a real prospect of successfully defending the claim; and
  2. the court determines there is another good reason to set aside the judgment, or allow the defendant to defend the claim.
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How Can Defendants Set Aside a Default Judgment?

Several key issues must be considered when applying to set aside a default judgment below:

1. Gather Evidence

Consider your reasons for the application and gather any relevant evidence. For example, you should collate evidence to show why you did not respond to the claim within the required time limits. It is also advisable to let the claimant know you will be making your application and seek their consent to set aside the default judgment. This could make the process faster and reduce costs.

2. Apply to the Court 

You must then submit an application form (Form N244) to the court, along with the required fee. Your application will need to state the grounds for applying for a default judgment. You will need to attach a draft order to your application. You will also need to include supporting evidence to justify setting aside the judgment. 

For example, your reason for the application might be:

  • you did not receive the claim form; 
  • the claimant applied for the judgment too early; or
  • you believe you have a real prospect of defending the claim.  

The court will confirm receipt of your application and usually schedule a hearing. 

3. Send Your Application Form to the Claimant 

You should then submit your application to the claimant (or their legal team) as soon as possible and within the prescribed timeframes. This is usually at least three days before the court is to deal with the application.

4. Hearing

A hearing judge will then consider your application. Both parties, or their legal representatives, will attend the hearing. The judge will hear the arguments and decide whether to set aside the default judgment. The claimant might oppose your application and make its arguments as to why the default judgment should remain in place. 

If the court agrees to set aside the default judgment, the judgment will be cancelled. The claimant will not be able to enforce it, and the claim will proceed as usual. However, if the court does not set the default judgment aside, the claimant will be able to enforce it, and you will need to comply with it. 

Tips for Setting Aside a Default Judgment

Applying to set aside a default judgment can be a complicated and stressful process for defendants. If you are a defendant, you should consider the following:

TipExplanation
Do not delay!You should make the application as early as possible. The court will consider whether you acted promptly, and doing so could support your case.
Gather your evidence. Carefully prepare your arguments and supporting evidence for the default judgment hearing.
Seek legal advice. If possible, seek urgent legal advice. Lawyers can help you understand the risks and merits of your application to set aside. Lawyers can also help you understand whether it is worth pursuing the application and your options if you admit to the claim. 
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Key Takeaways

Applying to set aside a default judgment is a complicated process. Several steps must be followed, and preparing your arguments and evidence is crucial. The court will only set aside a default judgment in specific and very limited circumstances. If you are unsure about any aspects of the application process, you should seek urgent legal advice on the process and your options. 

If you need legal advice on setting aside a default judgment, our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions

Can I apply to set aside a default judgment if I simply missed the deadline to respond?

Yes, but you will need to act promptly and provide an explanation for missing the deadline. The court will also consider whether you have a real prospect of successfully defending the claim.

What happens if the court refuses to set aside the default judgment?

If your application is unsuccessful, the judgment stands and may be enforced against you. This could include court orders to pay the debt, enforcement action or a negative impact on your credit rating.

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Kamila Oliwa

Kamila Oliwa

Corporate Paralegal | View profile

Kam is a Corporate Paralegal with over a year of practical experience in the legal field, coupled with a strong academic background. In her current role, Kam provides crucial support across various practice areas, with a primary focus on Corporate Law and Dispute Resolution. She assists with corporate matters, contributes to the firm’s disputes work, and manages technical and administrative tasks.

Qualifications: Bachelor of Laws, Swansea University.

Read all articles by Kamila

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