A default judgment is often entered without a hearing even taking place, and most commonly happens when a claim has not been acknowledged or defended within the required time limits. In certain circumstances, under the Civil Procedural Rules (CPR), the court can set aside or vary a default judgment. This article explores what a defendant must prove to have a default judgment set aside.
Mandatory Grounds for Setting Aside a Default Judgment
CPR 13.2 states that the court must set aside a default judgment if it was wrongly entered. Examples of this include:
- The defendant filed an acknowledgment of service or defence within the required time
- The claim was satisfied before judgment was entered
- The defendant was not properly served with the claim form
In these circumstances, the court has no discretion and must set aside the judgment once the error is established.
Discretionary Grounds for Setting Aside a Default Judgment
Most applications fall under CPR 13.3, where the court has discretion to set aside judgment the defendant must satisfy one or both of the following tests:
- A real prospect of successfully defending the claim: The defendant must show their defence is more than merely arguable. It does not need to guarantee success, but must have a realistic chance of succeeding at trial. This is usually demonstrated by providing a draft defence or clear evidence supporting the defence.
- Some other good reason: The court may also set aside a default judgment if there is a compelling reason why the defendant should be allowed to defend the claim. For instance, administrative errors, illness, or other circumstances that explain why the defence was not filed in time.
It is critical to act promptly where a defendant has a strong defence. The court will consider how quickly the application was made after the defendant became aware of the judgment. Unexplained delays can significantly reduce the chance of success regardless of the merits of the defence.
A witness statement is a common form of evidence used to support an application. This should explain why the default occurred, when the defendant became aware of the judgment, the nature of the proposed defence and why the application has been made promptly.
Obtaining early legal advice can significantly improve the prospects of a successful application to set aside default judgment. To set aside a default judgment, the defence must act quickly and have clear evidence, carefully demonstrating that the judgment was wrongly entered, there was a genuine defence, or there was a good reason for the default.
Contact us
If you need legal assistance with a default judgment, call Nath Solicitors on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.