Responding to a Claim

Question 1

Once the Particulars of Claim have been served on the Defendant (either with Claim Form or subsequently) how long do they have to respond?

Answer 1

Must do something within 14 days of deemed service

Question 2

What are the 3 ways a defendant can respond on receipt of the Particulars of Claim?

Answer 2

1. Admit the claim in whole or in part
2. File an Acknowledgement of Service
3. File a full Defence

(or ignore proceedings, which will lead to judgement in default)

Question 3

What is the procedure for a defendant admitting a specified claim in its entirety?

Answer 3

Defendant sends admission form N9A to claimant within 14 days of service of Particulars of Claim

→ If C accepts: claimant informs court & court enters judgement

→ If C does not accept: informs court why & requests court enter judgement - court determines rate of payment & enters judgement

Question 4

What happens if the claimant does not accept a defendant’s admission of an entire specified claim?

Answer 4

The claimant informs the court of the reason for rejecting & completes request for the court to enter judgement

→ The court determines the rate of payment & enters judgement

(Will be determined by a court officer if under £50k - otherwise by a district judge)

Question 5

What is the procedure for a defendant admitting a specified claim in part?

Answer 5

Defendant files part-admission within 14 days of service of Particulars of Claim → the court informs claimant who must complete Form N225A & return it within 14 days

→ If claimant accepts part admission, they request judgement entered by court for that amount

→ If claimant accepts part admission but rejects proposal for time to pay: court determines rate of payment

→ If claimant does not accept part admission: they inform the court & the matter proceeds

Question 6

What happens if a claimant accepts the defendant’s part admission of a specified claim but rejects the proposals for the time to pay?

Answer 6

The court determines the rate of payment & enters judgement for that amount

Determined by court officer if under £50k, otherwise by district judge

Question 7

What is the procedure for a defendant admitting an unspecified claim?

Answer 7

Defendant files N9C admitting liability within 14 days of service of Particulars of Claim (& offers sum of money) → court sends to claimant, who must respond within 14 days

→ If C accepts offer: completes N266 requesting judgement for amount offered

→ If C does not accept (or if D makes no offer): completes N266 requesting judgement for amount to be decided by court at a disposal hearing

Question 8

What happens if the claimant does not accept the defendant’s offer when admitting liability for an unspecified claim?

Answer 8

Claimant completes form N266 requesting judgement to be entered for an amount to be decided by the court at a disposal hearing

Question 9

What is the effect of the defendant filing an acknowledgement of service?

Answer 9

Extends the time they have to file a full defence from 14 days from service of particulars of claim to up to 28 days

Question 10

What is the time limit for filing a defence? Can this be extended?

Answer 10

Must be filed within 14 days from service of particulars of claim (or within 28 days if acknowledgement of service has been filed)

Time limit can be further extended with agreement from the other parties by max. 28 days

Question 11

What is the maximum amount of time a defendant could have between being served particulars of claim & filing a defence?

Answer 11

56 days

• Initial 14 days extended to 28 by filing acknowledgement of service
• Time limit further extended with agreement from other parties to the maximum 28 days

Question 12

What is a default judgement?

Answer 12

A judgement where there is no consideration of the facts

Question 13

When can a claimant request a default judgement?

Answer 13

If they can show that:

➤ The particulars of claim have been served on the defendant; and

➤ The defendant has not filed an acknowledgement of service or defence within the relevant time period

Question 14

What is the procedure for applying for a default judgement in a specified claim?

Answer 14

The claimant files a request for judgement indicating:

• Date payment due
• Current total for interest accrued
• Daily rate at which interest accrues

Court enters final judgement & payment required within 14 days

Question 15

What is the procedure for applying for a default judgement in an unspecified claim?

Answer 15

Claimant files request for judgement

Court enters interim judgement that amount will be decided at a disposal hearing

Question 16

What are the two grounds which a defendant can rely on to have a default judgement set aside?

Answer 16

I. Mandatory ground
Court must set aside default judgement if it was wrongly entered & claimant pays defendant’s costs

II. Discretionary ground
Court may set aside where:

a. Defendant has a real prospect of successfully defending claim; or

b. There is some other good reason why defendant should be allowed to defend the claim

& the defendant has applied promptly

Question 17

How does a defendant apply to have a default judgement set aside?

Answer 17

Filing form N244, usually supported by witness statement if relying on discretionary ground

Question 18

If the default judgement is set aside, who pays the costs?

Answer 18

Depends on why defendant succeeded:

• If succeeded because there was a good reason: each side pays their own costs
• If succeeded because real prospect of success: the defendant pays the claimant’s costs

Question 19

If the defendant fails to have the default judgement set aside, who pays costs?

Answer 19

The defendant pays the claimant’s costs

Question 20

What is a conditional order in a setting aside default judgement claim?

Answer 20

Judgement set aside on defendant pays monies into court (v rare)

Question 21

What is discontinuance?

Answer 21

When a claimant decides not to pursue their claim

Question 22

When can a claimant file for discontinuance?

Answer 22

At any time during the proceedings for all or part of a claim against all or any defendants

Question 23

Is permission required to discontinue a claim?

Answer 23

Not usually

Will be needed if:

• Court has granted interim injunction
• There is more than one claimant (unless every party consents in writing)

Question 24

How does a claimant discontinue & what is the effect?

Answer 24

File a notice of discontinuance & serve it on the parties

→ Proceedings are brought to end on date of service of notice of discontinuance

Claimant will be liable for costs of proceedings unless court orders otherwise

Question 25

Can a prospective claimant recover any costs if settlement is reached before issue of proceedings?

Answer 25

No

Question 26

If a settlement is reached after issue of proceedings, how should it be recorded?

Answer 26

As a court order or judgement

(Enables enforcement proceedings to be commenced if necessary)

Done as a consent order unless parties need it to be confidential, in which case will be a Tomlin order

Question 27

What is a consent order?

Answer 27

When parties settle after issue of proceedings, they record the terms in a consent order for sealing by court officer

The terms of the order are public

Question 28

What formalities must be complied with for a consent order to be valid?

Answer 28

a) Order agreed by parties must be drawn up in the terms agreed *

b) Must say it is ‘By Consent

c) Signed by legal representative of each of the parties

*Can only be terms that are within the powers of the court

Question 29

When will parties settling after issue of proceedings use a Tomlin Order?

Answer 29

If they want the terms to be confidential &/or the terms are beyond the powers of the court to order

Question 30

What is a Tomlin Order?

Answer 30

Stays the claim on agreed terms (which the parties wish to keep confidential / are beyond the powers of the court to order) in a schedule or separately

Question 31

What are 4 requirements for a Tomlin Order to be valid?

Answer 31

Must state it is ‘by consent’ & that proceedings are stayed

Any directions as to costs must be included in order itself (not in separate schedule)

Must include a liberty to apply clause (any party can apply for stay to be lifted & court enforcement if breach)

Signed by legal rep of each party

Question 32

What is the procedure if a defendant wishes to dispute the jurisdiction of the court?

Answer 32

Must state they wish to challenge in the acknowledgement of service –> will then have 14 days after filing to make a challenge

Question 33

What happens if the court grant’s a defendant’s application disputing jurisdiction?

Answer 33

Service of claim form is set aside & proceedings end

Question 34

What happens if the courts refuse a defendant’s application disputing jurisdiction?

Answer 34

The original acknowledgement of service ceases to have effect

Defendant must file a further acknowledgement within 14 days