2. Responding to a Claim Flashcards
Three options of defendant
- file or serve an admission (CPR 14);
- file a defence (CPR 15)
(or do both, if it admits only part of the claim); or
file an acknowledgment of service (CPR 10). This is the step to be taken if the defendant is unable to file a defence within the period initially allowed, or if it wishes to dispute the court’s jurisdiction (CPR 10.1).
Why acknowledge service?
The defendant will file an acknowledgment of service either:
- if it is unable to file the defence in time and needs longer than 14 days from the deemed date of service of the particulars of claim in which to serve a defence; or
- if it wishes to dispute that the court has jurisdiction to hear the claim.
In practice, it is common for the defendant to acknowledge service as the defence will often require finalising, with further instructions from the client and possibly some additional investigation being necessary.
It is still possible to file the defence (once it is ready) earlier than the extended deadline provided by acknowledging service. Filing the acknowledgment of service first will not therefore cause any unnecessary delay to the claim.
When to acknowledge service
The general rule is that the period for filing an acknowledgment of service is:
- where the defendant is served with a claim form which states that the particulars are to follow, 14 days after service of the particulars of claim; and
- in any other case, 14 days after service of the claim form (CPR 10.3).
Acknowledging service is not a compulsory step in a claim and, if appropriate and the defence is ready, the defendant could choose to defend instead straight away.
Note: In specialist divisions, the procedural rules can be different so it is important to check any specialist court guides or rules.
How to acknowledge service
The form for acknowledging service (Form N9) is sent to the defendant in the response pack.
The acknowledgment of service form is a simple form in which the defendant confirms their name is correctly stated on the claim form and gives their address for service of documents.
The defendant will also indicate, by ticking the appropriate box on the form, whether they intend to defend all or part of the claim, or whether they intend to contest the jurisdiction of the court to deal with the matter.
Deadlines for defence and acknowledging service
Filing an acknowledgment of service extends the time for filing a defence (CPR 15.4):
- If the defendant does not file an acknowledgment of service, it must file and serve a defence within 14 days of the deemed date of service of the particulars of claim.
- If the defendant does file an acknowledgment of service indicating an intention to defend the claim, it extends the deadline for serving the defence to 28 days after the deemed date of service of the particulars of claim.
After acknowledging service
Once the defendant has filed an acknowledgment of service, the court will notify the claimant in writing that this has been done (CPR 10.4), and the defendant’s solicitors will often notify the claimant / claimant’s solicitors directly as well.
The parties will now be able to calculate and diarise the deadline for the filing and service of the defence:
- Defendants need to ensure that the defence is ready and filed by this date (or take further action to extend this deadline if it is not).
- Claimants need to be ready to apply for judgment in default if the deadline expires and no defence is filed and served.
When to defend
A defendant contesting a claim must file a defence which sets out why the claim is disputed. A defence must be filed at court and served on all parties (CPR 15.6) within the prescribed time limits, as set out above (CPR 15.4(1)).
In certain circumstances, a longer period for filing a defence might apply (CPR 15.4(2)):
- where the claim form has been served out of the jurisdiction, longer periods apply depending on which other country is involved (see CPR 6.35/36);
- where a defendant makes an application disputing the court’s jurisdiction, the defendant need not file a defence before the hearing of that application;
- where, before the defence is filed, the claimant applies for summary judgment, the defendant need not file a defence before the hearing of that application (CPR 24.4(2)); and
- where the court makes an order for service of a claim form on an agent of a principal who is overseas, the court will specify the period (see CPR 6.12).
Extending time to serve defence
The defendant and claimant can agree an extension of time for serving the defence of up to 28 days (CPR 15.5), if (for example) the defendant needs more time to prepare the defence.
This means that it is possible for the defendant to have up to 56 days from the deemed date of service of the particulars of claim to file the defence without having to apply to the court for permission to extend the time for service.
If an extension of time is agreed, the court must be notified in writing (but no application to court is required).
Applications to court for extension of time to serve defence
It is not possible for the parties to agree an extension of more than 28 days. In this situation, the defendant will need to apply to the court for a longer extension to be granted. Similarly, if a claimant refuses to agree an extension of up to 28 days in accordance with CPR 15.5, the defendant will need to apply to the court for an order allowing an extension of time.
The court will ensure that the overriding objective is furthered in deciding whether to grant an extension of time. The reasons for the extension being needed and the impact of the extra time on the conduct of the claim will be relevant to the court’s decision.
Response of ‘money paid’
If the defendant is served with a claim for a specified amount of money (eg a debt claim), but has already paid the claimant before receiving the claim, they will respond to the claim with a defence which states that the debt has already been paid.
The rules provide a simple procedure to deal with the claim in this situation (CPR 15.10):
- When the court receives this type of defence, it sends a notice to the claimant which, in effect, asks the claimant whether the defence is correct.
- The claimant must respond within 28 days and the claim is stayed if they do not do so.
- Whatever their response, the claimant must serve a copy of it on the defendant.
- If the claimant does not wish to continue that is the end of the case.
- If the claimant does wish to continue (because they do not agree that the debt has been paid or because, for example, they still wish to recover interest and costs) the claim will proceed as a defended claim.
Admitting the claim
Just as when advising a claimant client who has instructed you on a new claim, if instructed by a defendant to a claim, you will conduct case analysis based on your client’s instructions and advise your client on their chances of succeeding in defending the action.
If the defendant does not wish to dispute the claim, or has been advised as a matter of law they have no defence to the claim and cannot dispute the claim, they may respond to the particulars of claim by admitting either the whole or part of the claim.
Admissions are dealt with in CPR 14 and PD 14. At the same time as admitting a claim, the defendant might also ask for time to pay.
How and when to admit the claim
The admission form is contained in the response pack sent to the defendant with the particulars of claim. There are different versions depending upon whether the claim is for a specified amount (Form N9A), or is a claim for an unspecified amount, non-money or return of goods (Form N9C).
A defendant wishing to admit the whole or part of a claim completes the relevant admission form and sends this to the court (or to the claimant directly if admitting a specified claim in full) within 14 days of deemed service of the particulars of claim.
Admitting specified claims
If a claim for a specified sum is admitted, the amount of money that needs to be paid is already known. Interest can also be calculated to the date of payment, the court fees are known and fixed court costs will apply, so there are no obstacles to a prompt determination of the amount of the claim.
The defendant may admit the whole claim for a specified amount of money (CPR 14.4) or only part of the claim (CPR 14.5).
The defendant will indicate, on Form N9A, whether the whole, or only part of the claim is admitted.
Except where one of the parties is a child or protected party, the claimant will have the right to enter judgment against the defendant for the admitted sum, which will also include interest.
Admitting the whole of a specified claim
[Diagram marked “ If the whole of a specified claim is admitted, the exact amount due can be calculated immediately.”. Diagram shows:
Particulars of claim served.
Claim admitted in full.
Judgment amount known (debt; court fees; interest; fixed costs]
Admitting unspecified claims
If a claim for an unspecified sum is admitted, quantum ie the amount of money that needs to be paid, and the amount of interest, is not yet known. Liability might now be resolved but quantum needs to be decided before the defendant knows the amount they will pay.
The defendant may admit liability to pay the whole claim for an unspecified amount of money (CPR 14.6) or may admit liability and offer a sum in satisfaction of the claim (CPR 14.7).
The defendant will indicate, on Form N9C, which of these options they are taking and, if offering a sum in satisfaction, will state the sum offered.
- If the whole claim is admitted, following a request being made by the claimant, the court will enter judgment for an amount to be decided later by the court and costs.
- Except where one of the parties is a child or protected party, the claimant will have the right to enter judgment against the defendant for any amount offered in satisfaction, if accepted by the claimant, or for an amount to be decided later by the court (and costs).
[Diagram marked “If the whole of an unspecified claim is admitted, judgment on liability can be given. This disposes of liability only and there will be a subsequent hearing and judgment determining quantum” Diagram shows:
Particulars of claim served.
Claim admitted in full.
Judgment on liability; quantum still to be decided.]
Entering judgment following the claim being admitted
The claimant will be notified of an admission and has the option to enter judgment against the defendant. A judgment is a ‘final order’ which disposes of the claim. (In unspecified claims, quantum will still need to be determined.) Judgment indicates that the claimant is, either completely or to some extent, the successful party. Claimants, therefore, will ordinarily prefer to have a judgment entered.
Defendants usually prefer not to have a judgment against them to avoid the possibility of enforcement proceedings, and because most judgments for money will be placed on a public, searchable register (the Register of Judgments, Orders and Fines) for a period of six years, which can have an impact on an individual’s credit rating.
Depending on the parties’ views (and bargaining positions), they might decide to conclude an admitted claim by way of settlement instead of entering judgment, using an order that stops short of a judgment, such as a Tomlin Order, or by the claimant agreeing to withdraw the claim. If a specified claim has been admitted and paid in full (with interest, court fee and costs) within the 14 day period for responding to the claim, it is unlikely that a judgment will also be entered.
The amount of the judgment
In specified claims, the judgment will comprise:
- the amount of the claim / debt including interest to the date of issue of the claim;
- interest since the date of issue (using the daily rate from the particulars of claim);
- court fees (ie issue fee as shown on the claim form); and
- fixed costs as set out in CPR 45 – there will be an amount of fixed costs as shown on the claim form and an additional amount to be added on entering judgment.
Credit will be given for any amounts paid by the defendant, leaving a net balance due.
In unspecified claims, the judgment will be on liability only, so there will be no amount of damages recorded. Instead, the matter will be listed for a subsequent hearing where evidence will be heard on the issue of quantum and the judge will hand down a judgment recording the amount due, including interest and provision for costs.
Section 35A Senior Courts Act 1981 / section 69 County Courts Act 1984 provide the court with the power to award simple interest on debts due where eg there is no other provision (such as a contractual term) allowing for interest to run.
How to enter judgment following a claim being admitted
Once the claimant has established that they are entitled to judgment, entering judgment for a specified sum following an admission is an administrative process. There will be no judicial involvement and the claimant simply files the correct paperwork which will be processed by the court staff. There is no hearing.
The claimant completes a request for judgment and reply to admission form within 14 days of receiving notice of the admission. On this form they will indicate the judgment amount, including interest, court fees and fixed costs, as well as the amount of any payments made by the defendant.