What is a default judgment?
A default judgement is a court decision that is binding in favour of the claimant if the defendant fails respond to a legal complaint. The claimant may ask the court for a default judgment if the defendant fails to file a defence within the specified period of time.
Default judgments are often sought in civil cases where one party doesn’t participate in the legal proceedings, allowing the other party to obtain a judgment without a full trial.
When Is Default Judgment Available?
Default judgment is available in situations where the defendant does not take any action in response to the claimant’s legal claim. It is available when the defendant does not acknowledge the claim, file a defense within 14 days, or files a defence in 28 days, if the claim was acknowledged within 14 day. For claims against the government and children, special court permission is usually required before a default judgement can be granted.
Additionally, default judgments cannot be applied for where the claim is for unliquidated damages. This will usually result in a court hearing where the court will assess damages. This will usually result in a court hearing when the court will assess damages.
Legal Implications of a Default Judgment
A default judgment carries significant legal weight. Once granted, a default judgment has the same legal weight as a court decision made after a full trial. The defendant is legally obligated to comply with the decision, which typically involves paying the amount claimed by the claimant or performing specific actions ordered by the court.
Failure to comply with a default judgment can lead to severe consequences, including enforcement actions such as damages being taken out of your salary, charges obtained against your property, or even bankruptcy proceedings. A default judgment can also negatively impact your credit rating, which could make it difficult to get a loan, credit or even housing. It’s not without risk. If the defendant later successfully applies to set aside the judgment, the claimant will need to continue their claim to trial or reach a settlement and may possibly need to start the legal process all over again.
What Are the Relevant Time Limits for a Default Judgment?
Time limits are fundamental in the process of obtaining a default judgment. The key deadlines are as follows:
Acknowledgement of Service
: The defendant has 14 days from the date of receiving the claim form to file an acknowledgement of service. The defendant has 28 days from the date of receiving the claim form to file a defense if they file an acknowledgement of service. If they fail to do so, the claimant can apply for a default judgment.
- Application for Default Judgment: Once the deadlines for acknowledgement and defence have passed, the claimant can either request or apply for a default judgment. The application or request must be made promptly, but there is no specific statutory deadline.
- Claimants must monitor these deadlines closely, as missing them could result in restarting the legal process or, in some cases, losing the opportunity to obtain a default judgment altogether.How Does the Claimant Request or Apply for Default Judgment?
- Check Eligibility: Before making the request or applying, the claimant must ensure the defendant has not filed an acknowledgement of service or defence within the required time limits. Additionally, the claimant must confirm that the claim is eligible for default judgment (e.g., it’s not against a government entity or involves unliquidated damages without court approval).
Complete the Necessary Forms
: The claimant must complete the relevant court forms to apply for default judgment. This includes Form N225 if the claim is for money or Form N227 if it’s not. Submit the Application
- The completed forms are to be submitted either online or via post. If the claim was made through Money Claim Online, you can also make the application online. The court fee is payable. The court will review all documents and make a final decision after reviewing the request application. If granted, the court will issue an order detailing the judgment, which may include payment instructions or other specific actions the defendant must take.How Does the Claimant Request or Apply for Default Judgment?
- Check Eligibility: Before making the Application, the claimant must ensure the defendant has not filed an acknowledgement of service or defence within the required time limits. The claimant also needs to confirm that their claim is eligible for a default judgment. (e.g. it’s against a government agency or involves unliquidated damage without court approval.)
- Submit your Application You can submit the completed forms to the court online or via post. The hearing will be scheduled by the court. If the defendant didn’t file an acknowledgement of service, then they are not entitled to notice of the application or to be served with any evidence The defendant will be served with the application and allowed to attend but may not be permitted to participate.
- What is the benefit of a request over an application and vice versa?The benefit of making a request is that it is quick and doesn’t require a hearing. The downside is you are limited to very small fixed costs. You can submit costs and claim all your costs by submitting an application. This is particularly important if your contract provides for a costs indemnity. It is more expensive and takes longer because a hearing is needed. This could take many months. It is more expensive and takes longer because a hearing is required and this might take many months.
Can a Default Judgment Be Set Aside?
- Yes, the defendant can apply to the court to have the judgment set aside if they can demonstrate a valid reason, such as not receiving the claim form, having a reasonable defence to the claim, or proving that they acted promptly once they became aware of the judgment.When applying to set aside a default judgment, the defendant must complete and submit Form N244, along with a witness statement explaining the reasons for the application. The court will schedule a hearing and decide whether to set aside the default judgment. This effectively reopens the case. The case will proceed as if the default judgement had never been granted. It means the defendant will have the opportunity to file a defence, and the case will proceed through the usual stages of litigation, potentially leading to a trial.
- Setting aside a default judgment doesn’t mean the defendant will automatically win the case; it simply restores the defendant’s right to defend themselves in court.Frequently Asked QuestionsHow Long To Pay After Default Judgment?
- Once a default judgment is granted, the court order will specify the time frame within which the defendant must pay the amount owed. Usually, the court order specifies a time frame of 14 days from the date of judgment. If the defendant fails to pay within this period, the claimant may take enforcement action to recover the debt.Final Thoughts
- Default judgments can resolve cases quickly when a defendant doesn’t respond, but the process must be handled with care to avoid potential issues. Both claimants and the defendants must be aware of the deadlines and steps. We are a national firm with extensive experience in dealing with commercial, construction and property disputes and claims. Our team has a proven track-record of specialist expertise. We’d be happy to help you. Contact our team.
