Responding to a claim

Question 1

What are the defendant’s options upon being served with a Claim Form and/or Particulars of Claim, and what are the consequences of failing to take action within the prescribed time limits?

Answer 1

• 1. Claim Form Only (No Immediate Action Required): If only the claim form is served with a note that “Particulars of Claim to follow,” the defendant need not act until the particulars are received.
  2. Particulars of Claim Served (Action Required): Once the particulars are served—either with the claim form or separately—the defendant must respond within 14 days of deemed service by:
  • Admitting the Claim (in whole or in part): The defendant accepts the claim, potentially leading to settlement or judgment.
  • Filing an Acknowledgment of Service: This extends the deadline for filing a defence to 28 days from deemed service. It preserves time without engaging with the substance of the claim.
  • Filing a Defence: The defendant may file a full defence within 14 days, or within 28 days if an acknowledgment of service is filed. The defence sets out the defendant’s position and arguments in response to the claim.
  3. No Response (Judgment in Default): If the defendant takes no action within the time limits, the claimant can apply for default judgment, resulting in a ruling in their favour without a hearing.*

Question 2

Defendant’s Response Options

Answer 2

Upon receiving the claim form and particulars of claim, the defendant has three main options under the Civil Procedure Rules (CPR):

1. File an admission (Part 14)
2. File an acknowledgment of service (Part 10)
3. File a defence (Part 15)

A fourth option, ignoring the claim entirely, allows the claimant to apply for judgment in default.

Question 3

Filing an Admission

Answer 3

If the defendant accepts they owe the money and can pay, it is in their best interest to admit the claim. This resolves the case quickly and limits costs. There are separate admission forms for specified (debt) and unspecified (damages) claims, and the defendant must use the correct one.

Question 4

What must a defendant do when admitting a specified claim in full, and what happens if the claimant rejects their proposed payment terms?

Answer 4

If the defendant admits a specified claim in full, they must provide income and expense details and offer to pay in full or by instalments. The claimant may then request judgment. If they reject the proposed terms, a judge—often without a hearing—will decide the payment rate.

Question 5

What options does a claimant have within 14 days if the defendant admits only part of a specified claim, and what factor often influences the decision?

Answer 5

If the defendant admits only part of a specified claim, the claimant has 14 days to:

(a) Accept the admission and request judgment.

(b) Accept the admission but reject payment terms, in which case the court will decide.

(c) Reject the offer and proceed with defending the rest of the claim
The decision often depends on the defendant’s ability to pay.

Question 6

In an unspecified claim, what happens if the defendant admits liability and offers a sum, and how is the case handled depending on whether the claimant accepts or rejects the offer?

Answer 6

In unspecified claims, where the defendant admits liability and offers a sum, the court will notify the claimant. If accepted, the claimant may enter judgment for that amount, and payment terms are handled as with specified claims. If the claimant does not accept the offer, the court will assess damages at a hearing.

Question 7

Acknowledgment of Service

Answer 7

If the defendant intends to defend the claim but needs more time, they can file an acknowledgment of service. This extends the deadline to file a defense from 14 days to 28 days. It buys time to gather evidence before submitting a full defense.

Question 8

When must a defendant file a full defence, what forms are typically used, and who is responsible for serving the defence on the other parties?

Answer 8

The defendant can file a full defense either within 14 days of receiving the particulars of claim or within 28 days if they filed an acknowledgment of service. Most defendants use the response pack forms, while solicitors may prepare a more detailed defense. Once the defence has been filed, a copy must be served on all other parties.

The Court will be responsible for this unless the defendant solicitor has indicated othertwise.

Question 9

Counterclaim

Answer 9

As part of the defendants response, they may wish to pursue A counterclaim.

A counter claim allows the defendant to pursue their own claim against the claimant. For example, if a defendant disputes the quality of goods or services provided, they may claim a breach of implied terms, such as unsatisfactory quality, and seek repayment or other remedies alongside their defense.

Question 10

How can a defendant extend the deadline for filing a defence, and what is required for an extension beyond 56 days?

Answer 10

If the defendant cannot meet the defense deadline, they can extend it by up to 28 days with the other party’s agreement, giving a total of 56 days. Any further extension requires court approval.

Question 11

What are the exceptions that can prevent a default judgment from being granted, and what must happen before default judgment can proceed in such cases?

Answer 11

• Exceptions to Default Judgment: Default judgment may be prevented if there is a pending summary judgment application or a motion to have the claimant’s statement of case struck out. These applications must be resolved before default judgment can be granted.

Question 12

Default Judgment

Answer 12

A default judgment is entered when the defendant takes no action in response to proceedings.

It allows the claimant to secure a judgment without any consideration of the facts, ensuring that defendants cannot evade liability by doing nothing.

It is a simple process, where the claimant requests judgment under CPR Part 12, showing that the particulars of claim were served and the defendant did not file an acknowledgment of service or defense within the required time.

Question 13

Procedure for Obtaining Default Judgment

Answer 13

To obtain a default judgment, the claimant must file an application under CPR Part 12, if the claim is for an unspecifed amount, or complex for example personal injury.

For a specified amount you would request default judgement.

Either way you would need to show:

1. The particulars of claim were served.
2. The defendant failed to file an acknowledgment of service or a defense within the relevant time limit.
   The application process varies based on the type of claim:

• For specified claims, the claimant must indicate the payment due date, calculate the interest up to date, and provide the daily interest rate.
• For unspecified claims, the judgment is granted but the case returns to court to assess damages at a disposal hearing.

Question 14

What are the two grounds a defendant go about Setting Aside a Default Judgment

Answer 14

If a default judgment has been entered, the defendant may seek to have it set aside under CPR Part 13. There are two grounds for setting aside:

1. Mandatory Ground: The court must set aside the judgment if it was wrongly entered, such as if the defendant’s time to respond had not expired or if the claim was paid in full before judgment was entered.
2. Discretionary Ground: The court may set aside the judgment if the defendant has a real prospect of defending the claim or there is another good reason (e.g., illness or being away) why the defendant should be allowed to defend the claim.

Excuses such as the pressure of work or the documents being misplaced would not be sufficient.

Question 15

What information must a claimant provide when seeking default judgment in specified claims, and how is the amount determined in unspecified claims?

Answer 15

• Specified Claims: For debt claims, the claimant must provide details such as the payment due date, up-to-date interest, and the daily interest rate. This allows the court to calculate the exact amount owed. Payment is usually required within 14 days of the judgment.
• Unspecified Claims: In claims where the amount is unspecified (e.g., damages), the claimant is granted default judgment, but the exact amount owed is determined later at a disposal hearing.

Question 16

Mandatory Ground for Setting Aside Judgment

Answer 16

The court must set aside a default judgment if it was wrongly entered, which occurs if the defendant’s time to file an acknowledgment of service or defense had not yet expired, or if the claim had been paid in full before the judgment was entered. This is a mandatory ground under CPR Part 13, and the judgment will be reversed without any discretion from the court.

Question 17

Discretionary Ground for Setting Aside Judgment

Answer 17

The court may set aside a default judgment at its discretion if the defendant:

1. Has a real prospect of successfully defending the claim, or:
2. There is some other good reason to allow the defendant to defend the claim, such as illness or absence during the time of the proceedings.
   The defendant must file their application as soon as they become aware of the default judgment to comply with the overriding objective of handling cases expeditiously and fairly.

Question 18

What are the possible outcomes when a defendant applies to set aside a default judgment, and in what circumstances might the court issue a conditional order?

Answer 18

When a defendant applies to set aside a default judgment, the judge may issue one of the following orders:

1. Set Aside Judgment: If the defendant succeeds, the judgment is set aside, allowing them to continue defending the case.
2. Maintain Judgment: If the claimant wins, the judgment remains in place, and the claimant can proceed to enforcement.
3. Conditional Order: The judgment is set aside on the condition that the defendant pays money into court (e.g., the claim amount), used when the court suspects the defense is merely a delaying tactic. This is the least likely outcome.

Question 19

Costs of Setting Aside Judgment Applications

Answer 19

The costs of setting aside a default judgment depend on the outcome of the application:

• If the judgment is set aside on a mandatory ground, the claimant must pay the defendant’s costs for entering judgment when they should not have.
• If the judgment is set aside on a discretionary ground (e.g., good reason), costs are typically in the case (shared responsibility).
• If the judgment is set aside because the defendant has a real prospect of success, the defendant generally pays the claimant’s costs.
• If the application fails, the defendant is liable for the claimant’s costs of the application.

Question 20

What happens were a claim includes both specified and unspecified amounts?

Answer 20

The entire claim is treated as unspecified.

Question 21

Can a claimant discontinue all or part of a claim, and what is the procedure and who bears the costs?

Answer 21

Yes, a claimant can discontinue all or part of a claim at any stage by filing and serving a notice of discontinuance on all parties. If another party’s consent is needed, it must be attached to the notice.

Discontinuance ends the proceedings for the defendant upon service. The claimant is usually liable for costs unless the court orders otherwise, so it is important to assess the merits of the case before issuing proceedings.

Question 22

Is permission required for discontinuance in all cases?

Answer 22

No, permission is not usually required for a claimant to discontinue a claim. However, permission must be obtained in certain circumstances, such as when the court has granted an interim injunction. Additionally, if there is more than one claimant, all claimants must consent in writing, or the court must grant permission for discontinuance to proceed.

Question 23

What happens if there is more than one defendant in a discontinuance?

Answer 23

If there is more than one defendant, the claimant may choose to discontinue the claim against all or any of the defendants. The process remains the same: the claimant must file and serve a notice of discontinuance, and the proceedings will end for the specified defendant(s) on the date they are served.

Question 24

What are the cost implications for the claimant when discontinuing a claim?

Answer 24

When a claim is discontinued, the claimant is generally liable for the costs of the proceedings up to the point of discontinuance, unless the court orders otherwise.

Question 25

What is the process for settling a case before issuing proceedings, and how are legal costs handled?

Answer 25

When a settlement is reached before the issue of proceedings, the prospective claimant is typically not entitled to recover legal costs unless it is specifically agreed. The settlement terms must be clearly recorded in writing, either through correspondence or a formal settlement agreement, to ensure enforcement if one party defaults on the agreement.

Question 26

How are settlements recorded after proceedings have started, and why is a court order preferred?

Answer 26

If a settlement is reached after proceedings have begun, it is preferable to record the settlement in a court order or judgment. This is because a court order allows for enforcement proceedings if the terms of the settlement, including costs, are not honored. Recording the settlement in a court order helps avoid future disputes about the settlement terms.

Question 27

What is a consent order, and what formalities must be followed?

Answer 27

When none of the parties is a litigant in person, it will often be possible to avoid an application to the court by drawing up a consent order or judgment for sealing by a court officer. A consent order is a court order agreed upon by the parties, used to record the terms of a settlement. The formalities include: * The order must be drawn up in the terms agreed by the parties. * It must be expressed as being “By Consent”. * It must be signed by the legal representatives of all parties involved. If any part of the settlement includes confidential terms or conditions beyond the powers of the court, a Tomlin order should be used instead of a standard consent order.

Question 28

What is a Tomlin order, and when is it used? and does it stay porceedings

Answer 28

A Tomlin order is a type of consent order that stays proceedings on agreed terms. It is used when the parties wish to include terms that are confidential or beyond the court’s powers, such as payment of money. The schedule is usually held by the parties’ solicitors, and only the core terms—such as the stay of proceedings and costs—appear in the public court record.

Question 29

What happens if a defendant disputes the court’s jurisdiction, and what is the procedure?

Answer 29

If a defendant wishes to dispute the jurisdiction of the court, they must state this in their acknowledgment of service. The defendant then has 14 days from filing the acknowledgment to make a formal challenge. If successful, the service of the claim form is set aside, and the proceedings are terminated. If the court rejects the application, the original acknowledgment ceases to be valid, and the defendant must file a new one within 14 days, after which the proceedings will continue as usual.

Question 30

What are the key components and their explanations in a consent order?

Answer 30

1. ‘By consent’: This term confirms that the parties have reached an agreement. 2. Stay of proceedings: Indicates that the proceedings are paused. 3. Liberty to apply: Allows any party to request that the stay be lifted and enables the court to enforce the settlement without needing new proceedings. 4. Payment of costs or detailed assessment of costs: When one party must pay another’s costs, or the parties request a court-assessed calculation of costs, this must be included in the order. 5. Signed by the parties’ solicitors: A formal requirement showing that the solicitors consent to the agreement.

Question 31

What are the two main options a defendant has upon receiving a claim form and particulars of claim?

Answer 31

The defendant must either admit or deny the claim by responding with an admission or defense.

Question 32

What is a response pack, and what is its purpose in civil proceedings?

Answer 32

A response pack is a set of forms provided by the claimant, giving the defendant all necessary documents to respond to the claim, including options to admit, defend, or acknowledge the claim.

Question 33

What happens if the defendant does not respond to a claim within the required timeframe?

Answer 33

The claimant can apply for default judgment, meaning they automatically win the case due to lack of response from the defendant.

Question 34

How many days does a defendant have to respond to a claim form with a defense or admission?

Answer 34

The defendant must respond within 14 days of deemed service of the particulars of claim.

Question 35

What is an acknowledgment of service, and what effect does it have on deadlines?

Answer 35

It is a form the defendant can file to extend the deadline for filing a defense from 14 days to 28 days from deemed service.

Question 36

In a scenario where a claim is served on a Monday, what is the final day to file an acknowledgment of service?

Answer 36

14 days after the date of deemed service, so if deemed served on a Monday, the acknowledgment must be filed by the following Monday.

Question 37

If a defendant fails to file an acknowledgment, defense, or admission by the deadline, what can the claimant do next?

Answer 37

The claimant may apply for judgment in default starting the next day after the deadline.

Question 38

What is the purpose of Form N9A in civil litigation?

Answer 38

Form N9A is used by the defendant to admit the claim, indicate how much is admitted, and potentially request time to pay.

Question 39

What form is used to both dispute a claim and make a counterclaim against the claimant?

Answer 39

Form N9B, titled “Defense and Counterclaim.”

Question 40

What is the primary purpose of Form N9B in civil litigation?

Answer 40

To allow the defendant to dispute all or part of the claim and optionally make a counterclaim against the claimant.

Question 41

What does the first section of Form N9B ask the defendant?

Answer 41

It asks, “How much of the claim do you dispute?”, allowing the defendant to clarify the extent of their disagreement.

Question 42

Where on Form N9B does the defendant provide the details of their defense?

Answer 42

In the defense box, the defendant outlines their reasons for disputing the claim.

Question 43

What is a counterclaim in the context of civil litigation?

Answer 43

A claim made by the defendant against the claimant, usually arising from the same facts or transaction as the original claim.

Question 44

What information must be provided in Box 4 of Form N9B (Defense and Counterclaim) when making a counterclaim?

Answer 44

The amount being claimed against the claimant and the reasons for the counterclaim.

Question 44

Does Form N9B (Defense and Counterclaim) allow a defendant to partially admit and partially dispute a claim?

Answer 44

Yes. The form lets the defendant specify how much of the claim is disputed and provide a defense accordingly.

Question 45

What form must be returned to dispute the court’s jurisdiction?

Answer 45

The Acknowledgment of Service form must be returned

Question 46

What specific action must be taken on the Acknowledgment of Service form to dispute jurisdiction?

Answer 46

You must tick the box that states “I intend to contest jurisdiction.”

Question 47

What happens if a defendant files a defense while intending to dispute jurisdiction?

Answer 47

The defendant is deemed to have submitted to the jurisdiction of the court, and can no longer contest it.

Question 48

What is the consequence of submitting a defense without first contesting jurisdiction?

Answer 48

The defendant waives the right to challenge jurisdiction and accepts the authority of the court.

Question 49

How should a defendant proceed if they believe the English court lacks jurisdiction?

Answer 49

File the Acknowledgment of Service and tick the box to contest jurisdiction, but do not file a defense at that stage.

Question 50

What key mistake should defendants avoid if they wish to challenge jurisdiction?

Answer 50

Filing a defense, as this implies acceptance of the court’s jurisdiction and prevents further challenge.

Question 51

What is Default Judgment in civil litigation?

Answer 51

It is a judgment entered without trial when the defendant has failed to file an Acknowledgment of Service or a defense within the time limit.

Question 52

When can a claimant apply for Default Judgment?

Answer 52

When the defendant has not responded by filing an Acknowledgment of Service or a defense, and the time for doing so has expired.

Question 53

What form is used to apply for Default Judgment?

Answer 53

Form N227.

Question 54

hat must the claimant confirm when completing Form N227 ( the form for default judgement)

Answer 54

That the defendant has not filed an Acknowledgment of Service or defense, and the deadline has passed.

Question 55

What does Default Judgment allow the claimant to obtain?

Answer 55

A judgment in their favor without the need to go to trial.

Question 56

Does Default Judgment require the court to hear evidence or hold a trial?

Answer 56

No. It is granted without trial, based solely on the defendant’s lack of response.

Question 57

What happens if a defendant later wants to challenge a Default Judgment?

Answer 57

They must apply to the court to set aside the Default Judgment, usually by showing a valid reason for the failure and a reasonable prospect of defending the claim.

Question 58

What is the term for withdrawing a claim after it has been filed in court?

Answer 58

This is called discontinuance.

Question 59

What must a party do if they decide to discontinue their claim or counterclaim?

Answer 59

They must file a Notice of Discontinuance using the appropriate court form.

Question 60

What is the name and number of the form used to discontinue a claim or counterclaim?

Answer 60

Form N279 – Notice of Discontinuance.

Question 61

Who can discontinue a claim or counterclaim using Form N279?

Answer 61

Either the claimant or the defendant can discontinue all or part of a claim or counterclaim.

Question 62

What is a key financial consequence of discontinuing a claim?

Answer 62

he party discontinuing the claim is generally required to pay the other side’s legal costs.

Question 63

Can discontinuance apply to a counterclaim as well as an original claim?

Answer 63

Yes, discontinuance applies to both claims and counterclaims.

Question 64

What is the procedural effect of filing a Notice of Discontinuance?

Answer 64

The claim or counterclaim is withdrawn from the court process, and the case does not proceed to judgment on that part.