3 - Responding to Proceedings

Question 1

What are the three main ways that a defendant will respond to proceedings brought against them?

Answer 1

The defendant may (CPR 9.2):
- File or serve an admission (CPR 14)
- File a defence (CPR 15)
- 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 courts jurisdiction (CPR 10.1).

Only need to do this once particulars of claim have been received.

Question 2

In what circumstances will the defendant file an acknowledgment of service?

Answer 2

The defendant files an acknowledgment of service if:

• They need more than 14 days from the deemed date of service to file a defence.
• They wish to dispute the court’s jurisdiction to hear the claim.

Filing acknowledgment is common as finalising a defence often requires more time for investigation and client instructions. It does not cause delays as the defence can be filed earlier if ready.

Question 3

When (timing wise) will a defendant need to file an acknowledgment of service?

Answer 3

• If particulars of claim follow the claim form: 14 days after service of the particulars.
• In other cases: 14 days after service of the claim form.

Acknowledging service is optional. If the defence is ready, the defendant can file it directly without acknowledgment.

Question 4

How can a defendant file an acknowledgment of service?

Answer 4

The defendant files an acknowledgment of service using Form N9, included in the response pack.

The form confirms the defendant’s name and address, and indicates whether the defendant:
- Intends to defend all or part of the claim.
- Disputes the court’s jurisdiction.

Question 5

What happens if the defendant does not file the acknowledgment of service within the deadline imposed?

Answer 5

If no acknowledgment is filed, the defendant must file and serve the defence within 14 days of the deemed service of the particulars of claim.

Failure to do either can lead to the claimant applying for default judgment.

In other words, the defendant has 28 days from service of the particular of claim to file a defence.

Question 6

What happens after the defendant has filed an acknowledgment of service?

Answer 6

• The court notifies the claimant that acknowledgment of service has been filed.
• The deadline for the defence is extended to 28 days from the deemed date of service of the particulars of claim.
• The defendant must file the defence by this date or seek an extension, while the claimant can apply for default judgment if no defence is filed.

Question 7

In what circumstances will the defendant file a defence in response to the claim?

Answer 7

A defence must be filed if the defendant intends to dispute the claim.

It must be filed within:
- 14 days of service of the particulars of claim if no acknowledgment of service is filed.
- 28 days if an acknowledgment of service is filed.

Exceptions where no defence is required:
- Application disputing the court’s jurisdiction.
- Application for summary judgment by the claimant.
- Service of claim form outside jurisdiction.

Question 8

What is the process for extending the time to serve a defence beyond the standard deadline?

Answer 8

• The defendant and claimant can agree themselves to extend the time to serve a defence by up to 28 days, giving a total of 56 days from the deemed date of service of the particulars.
• If more time is required, the defendant must apply to the court for an extension.
• The court will consider the reasons for the request and the effect on the claim, following the overriding objective to ensure fair and efficient case management.

Question 9

Under what circumstances will a defendant respond to a claim with a defence stating that money has been paid?

Answer 9

If a defendant has already paid a specified amount (e.g., a debt) before receiving the claim, they can file a defence stating that the debt has been paid.

• The court will notify the claimant and ask if the defence is accepted.
• The claimant has 28 days to respond. If no response, the claim is stayed.
• If the claimant agrees the debt is paid, the case ends. If not, the claim proceeds as a defended claim.

Question 10

How and when should a defendant admit the claim?

Answer 10

• The defendant admits a claim when they choose not to dispute it, either wholly or in part, often after legal advice.
• Admissions must be made using the admission form from the response pack (Form N9A for specified claims; Form N9C for unspecified claims).
• The form should be returned to the court (or to the claimant if admitting a specified claim in full) within 14 days of deemed service of the particulars of claim.

Question 11

How can a defendant admit a specified claim (whole or part)?

Answer 11

• For specified claims, the defendant admits the whole or part of the claim using Form N9A.
• If the whole claim is admitted, the judgment amount will include the debt, court fees, interest, and fixed costs.
• If only part is admitted, the defendant will file a defence for the unadmitted balance, while the admitted part will proceed to judgment.

Question 12

How can a defendant admit an unspecified claim (whole or part)?

Answer 12

• For unspecified claims, the defendant admits liability and either offers a sum in satisfaction or leaves quantum (the amount to be paid) for the court to decide.
• Use Form N9C to admit liability.
• If the whole claim is admitted, the court will decide quantum later. If the defendant offers a sum, the claimant can either accept or continue the dispute.

Question 13

How can a defendant request time to pay after admitting the claim?

Answer 13

• The defendant can request time to pay either as a lump sum by a future date or in instalments.
• This request is made through the admission form (Forms N9A or N9C), where the defendant provides financial details (income, outgoings, etc.).
• If the claimant rejects the payment proposal, the court will decide the payment schedule based on the information provided (CPR 14.10).

Question 14

How is judgment entered following a claim being admitted?

Answer 14

• The claimant can request judgment by completing the request for judgment and reply to admission form within 14 days of receiving the defendant’s admission.
• Judgment will be entered for the amount claimed (plus interest, fees, and costs) for specified claims or for liability in unspecified claims.
• This is an administrative process without judicial involvement.

Question 15

How is the amount of the judgment calculated in specified claims?

Answer 15

The judgment amount includes:
- The claim/debt (including interest to the date of issue),
- Interest accrued after issuing the claim (based on the daily rate from the particulars of claim),
- Court fees (as shown on the claim form), and
- Fixed costs (per CPR 45).

Credit is given for any amounts already paid by the defendant.

Question 16

How is the amount of the judgment calculated in unspecified claims?

Answer 16

• In unspecified claims, judgment is first entered for liability, and the amount of damages (quantum) will be determined at a subsequent hearing.
• The court will decide on quantum after hearing evidence, and the judgment will include interest and costs.

Question 17

What are the next steps after admitting a claim and how is the claim concluded?

Answer 17

• Once judgment is entered, the claim is effectively concluded.
• Unless otherwise agreed, the amount due is payable by the defendant within 14 days (CPR 40.11).
• If payment is not made, the claimant can initiate enforcement proceedings to recover the outstanding amount.

Question 18

What does counting time refer to and what are the four most important rules?

Answer 18

Counting time refers to calculating deadlines and time limits in claims, as required by the CPR, PDs, or court orders.

The four key rules for counting time are:

1. The start day (day on which the period begins) is not counted.
2. The end day (event-related deadlines) is not counted. This does not count where the end day is marked by an event, e.g., a hearing or a trial.
3. For periods of 5 days or less, weekends and holidays are excluded.
4. If a deadline falls on a day when the court is closed, the next open day applies.

Question 19

What is Rule 1 for counting time?

Answer 19

Rule 1: Under the CPR, any reference to a number of days (such as “The general rule is that the period for filing a defence is 14 days after service of the particulars of claim”) means ‘clear days’ as defined by the rules.
Firstly, the day on which a period begins is never included so you would always start counting on the following day.

For example, if a document is served on Tuesday, counting starts on Wednesday (i.e., Tuesday is day zero, and Wednesday is day one).

Question 20

What is Rule 2 for counting time?

Answer 20

Rule 2: If the end of the period is defined by an event (e.g., a hearing), the day of the event is not counted.

Example: For a hearing on Wednesday, evidence must be served at least 3 clear days before, meaning the latest service date would be Thursday of the prior week.

Question 21

What is Rule 3 for counting time?

Answer 21

Rule 3: For periods of 5 days or less, weekends (Saturdays and Sundays), Bank Holidays, Christmas Day, and Good Friday do not count. For periods of more than 5 days, these days count.

Example: If a hearing is on Monday, and documents must be served 3 days in advance, you would not count the weekend before the hearing.

Question 22

What is Rule 4 for counting time?

Answer 22

Rule 4: If a deadline falls on a day when the court office is closed (e.g., weekends or bank holidays), the deadline is extended to the next day the court is open.

Example: If a document is due on a Bank Holiday Monday, it will be treated as filed on time if submitted by Tuesday when the court reopens.

Question 23

What is the purpose of a defence?

Answer 23

The defence is the defendant’s response to the claimant’s particulars of claim.

Purpose:
- Address every allegation in the particulars of claim.
- State full details of the defendant’s case.

Each allegation must be individually dealt with.

Question 24

What are the general contents of a defence sent by the defendant?

Answer 24

• Defendant’s address for service in the jurisdiction (unless already filed).
• Response to each allegation (the defendant can either admit, deny, or require proof).
• Additional points as needed.
• Miscellaneous points specific to the claim, such as limitation, dispute of value, personal injury details, mitigation, set-off, other defences, and human rights arguments.

Question 25

What does admitting an allegation involve in a defence?

Answer 25

• Acknowledging the truth of the allegation.
• The claimant does not need to provide further evidence for that allegation.
• Helps narrow issues, saving time and costs.

Example: Admitting the existence of a contract but disputing the amount owed.

Question 26

What does denying an allegation involve in a defence?

Answer 26

Denying:

• Disputing the truth of the allegation.
• Must provide reasons and an alternative version if applicable.
• Requires the claimant to prove the allegation.

Example: Denying a debt claim and explaining why it’s disputed, such as payment already made.

Question 27

What does requiring proof of an allegation involve in a defence?

Answer 27

Requiring Proof:
- Asking the claimant to prove an allegation if the defendant cannot admit or deny it.
- Useful when the defendant lacks knowledge about the allegation.

Example: Denying breach but requiring proof of the amount of alleged loss.

Question 28

What are the consequences of failing to deal with an allegation in a defence?

Answer 28

Consequences:
- Omission is deemed an admission unless a case is set out for the allegation.
- In money claims, the amount claimed is not admitted unless specifically acknowledged.
- Always good practice to address every allegation.

Question 29

What specific matters must be included in a defence?

Answer 29

• Limitation: State the expiry date of the limitation period if this is an issue.
• Disputing Statement of Value: State reasons for disputing and estimate the value.
• Personal Injury Claims: Address agreement, dispute, or lack of knowledge of expenses and losses, and provide counter-schedule and medical evidence if applicable.
• Mitigation: State any matters related to reduction of damages.
• Set-off: Claim money owed by the claimant to offset the defendant’s liability.
• Other Defences: Include defences related to fraud, illegality, or human rights.
• Counterclaim: Include if applicable, normally in the same document as the defence.

Question 30

What is the standard structure of a defence?

Answer 30

• Start with the case heading and end with a statement of truth.
• Respond point by point to the allegations in the particulars of claim.
• Adopt defined terms from the particulars of claim.
• Address each paragraph (admit, deny, or require proof).
• Include a ‘general denial’ of entitlement to the claimed amount if applicable.

Question 31

What is the purpose, content, and structure of a reply?

Answer 31

Purpose:
It is an optional statement of case served by the claimant. Address new facts or points raised in the defence not included in the claim.

Content:
Factual allegations responding to new points from the defence. The contents will therefore be factual allegations which answer ‘new’ points raised in the defence.

Structure:
No specific structure; respond to new facts or points as necessary.

Question 32

When should a reply be filed to the defendants response?

Answer 32

When to File:
- Replies should be filed with the directions questionnaire after the claim is defended.
- Deadline typically 14 days after notification.
- Specialist proceedings may have different deadlines; check relevant rules and guides.

Last Statement of Case:
- The reply is the final statement of case unless the court grants permission for additional statements.

Question 33

What is a default judgment?

Answer 33

Default judgment is when the claimant applies for judgment in their favour without a trial because the defendant has failed to respond by filing an acknowledgment of service or a defence within the prescribed time limits (CPR 12.1). It is also called judgment in default.

Question 34

What must the claimant show to obtain default judgment?

Answer 34

The claimant must show that:
- The time for filing acknowledgment of service or a defence has expired.
- The defendant has not admitted or satisfied the claim.
- No application for summary judgment or strike out has been made (CPR 12.3).

Question 35

What is the difference between default judgment and strike out?

Answer 35

Default judgment occurs when the defendant fails to respond to the claim within the time limits, while strike out is when the court removes a statement of case due to it not being legally valid (CPR 3.4).

Strike out looks at the content of the case, whereas default judgment does not.

Question 36

What is the difference between default judgment and summary judgment?

Answer 36

Default judgment is procedural, based on the defendant’s failure to respond, and does not consider the merits of the case.

Summary judgment is granted when the case is weak on facts, and the court considers the merits.

Question 37

What is the procedure for obtaining default judgment?

Answer 37

The claimant can file a request for default judgment if the conditions are met:

• For money claims (specified sum): The court will enter judgment on paper.
• For money claims (unspecified sum): - - The court will enter a judgment and set a hearing to decide the sum.
• For non-money claims: A default judgment hearing will be held.

Question 38

What is the interest rule for default judgments in money claims?

Answer 38

For specified amounts of money, default judgments may include interest if:

• The particulars of claim include details of the interest (CPR 16.4).
• Where statutory interest is claimed (under s.35A of the Supreme Court Act 1981 or s.69 of the County Courts Act 1984), the rate is no higher than the rate of interest payable on judgment debts at the date when the claim form was issued; and
• The claimant’s request for judgment includes a calculation of the interest claimed to the date of the request for judgment.

In any other case, the amount of interest will be decided by the court.

Question 39

In what cases must the court set aside default judgment, and when does the court have discretion to set it aside?

Answer 39

The court must set aside default judgment (CPR 13.2) if:

• The time limit for acknowledgment of service/defence had not expired. For example, where the court enters the date wrongly.
• An acknowledgment of service or defence was filed on time.
• An application for summary judgment or strike out was made before judgment.
• The claim was satisfied or admitted before judgment.

The court may set aside default judgment (CPR 13.3) if:

• The defendant has a real prospect of successfully defending the claim.
• There is some other good reason for judgment to be set aside or varied, or for allowing the defendant to defend the claim.

‘May’ set aside provides the court with discretion and therefore it must act in accordance with the overriding objective.

Question 40

What are examples of ‘some other good reason’ to set aside default judgment, and how does delay and the Denton test factor in?

Answer 40

Examples of ‘some other good reason’ include:

• The claimant lulled the defendant into believing no claim was forthcoming.
• The claimant failed to serve a response pack.
• The claim raises public interest issues needing a full hearing.

Delay: The court will consider how promptly the defendant applied to set aside judgment (CPR 13.3(2)) and the importance of complying with time limits.

Denton test: Applications to set aside using discretion are treated as applications for relief from sanctions, so the Denton principles (from Denton v TH White Ltd) guide the court’s discretion.

The court may set aside default judgment with conditions, such as requiring the defendant to pay the claimant’s costs.

Question 41

What is the interest rule for default judgments in unspecified sum money claims?

Answer 41

Provided the conditions mentioned under CPR 12.3 are satisfied, the claimant may file a request for judgment on the specified form and the application will be dealt with on paper.

The court will enter a judgment for a sum to be decided by the court and will set a timetable leading up to a hearing at which the court will decide that sum.

Question 42

What is the rule for non-money claims in relation to default judgments?

Answer 42

Cannot be decided on paper. Provided the 12.3 conditions are met, the claimant must instead apply for a default judgment hearing to be listed at which the court will hear from the claimant as to why default judgment should be granted and what judgment should be given.

The court will then give whatever judgment it considers appropriate.

Question 43

What are the default judgment rules when making a claim against more than one defendant?

Answer 43

• A claimant may obtain a default judgment against one of two or more defendants and proceed with the claim against the other defendants if the claim can be dealt with separately from the claim against the other defendants (CPR 12.9).
• Sometimes the claim cannot be dealt with separately eg where the claim against the two defendants is ‘in the alternative’, meaning the claimant alleges one (and only one) of the defendants is liable, but does not know which.
• The success of one claim and the failure of the other go hand in hand, so they cannot be dealt with separately. So the court will deal with the application for default judgment against one defendant at the same time as it disposes of the claim against the other defendants – quite possibly at trial.

Question 44

What is the rule for default judgments for specified money claims?

Answer 44

The claimant may file a REQUEST for judgment on the specified form and the application will be dealt with on paper. The court will make a judgment for the amount sought, fixed costs and interest accrued to the date of judgment.