Monday 8 July 2024
Dear Subscriber,
I hope you had a great weekend. Please see below for the question, the answer to the previous question and associated resources. This is the web version of this newsletter.
GOOD LUCK TO EVERYONE STARTING SQE1 NEXT WEEK
Question: ABC Ltd is involved in a commercial dispute with XYZ Ltd over a breach of contract. ABC Ltd has filed a claim using the Part 7 procedure under the Civil Procedure Rules. After filing the claim, both parties are required to complete and exchange allocation questionnaires. The case has been allocated to the multi-track, and the court has issued directions for managing the case towards trial. However, XYZ Ltd fails to comply with one of the court’s directions, which requires them to disclose certain documents by a specified deadline. ABC Ltd wants to ensure that the case proceeds without further delays and seeks guidance on how to address XYZ Ltd’s non-compliance.
What procedural step can ABC Ltd take under the Civil Procedure Rules to address XYZ Ltd’s failure to comply with the court’s directions?
1. Apply for summary judgment against XYZ Ltd
2. Apply for a stay of proceedings until XYZ Ltd complies with the directions
3. Apply for an order for specific performance of the contract
4. Apply for an unless order, requiring XYZ Ltd to comply with the directions or face sanctions
5. Apply for mediation to resolve the dispute
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Study Material: For more on the topic of this week’s question see the video linked here and if you are looking for* a relevant title, see here. Free Study Planner: You can download our SQE1 Study Planner for the January 2025 exam by clicking here.
Answer and feedback to last week’s question: John is a small business owner who has recently received a claim form from Sarah, a former customer, alleging breach of contract and seeking compensation for losses. John, unfamiliar with the civil procedure process, did not respond to the claim form in time. As a result, Sarah obtained a default judgment against him. John now wishes to contest the default judgment, arguing that he never received proper notice of the claim due to an address error.
Which of the following steps must John take to successfully apply to set aside the default judgment under the Civil Procedure Rules (CPR)?
1. John must prove that he had a valid defence to the claim.
2. John must show that the claim form was served improperly and that he acted promptly upon discovering the default judgment.
3. John must demonstrate that Sarah’s claim is frivolous and without merit.
4. John must provide evidence that he was out of the country when the claim form was served.
5. John must agree to settle the claim out of court to have the judgment set aside.
Correct Answer: 2. John must show that the claim form was served improperly and that he acted promptly upon discovering the default judgment. Feedback: Under the Civil Procedure Rules (CPR), a default judgment can be set aside if the defendant can show that they did not receive proper notice of the claim due to an issue with service, and that they acted promptly upon discovering the default judgment. Specifically, CPR 13.2 states that the court must set aside a judgment entered under Part 12 if it is satisfied that the defendant was not properly served with the claim form. Additionally, under CPR 13.3, the court has discretion to set aside or vary a default judgment if the defendant has a real prospect of successfully defending the claim, or if it appears that there is some other good reason why the judgment should be set aside or varied, or why the defendant should be allowed to defend the claim .
In this scenario, John must demonstrate that the claim form was served improperly (e.g., due to an address error) and that he acted promptly once he became aware of the default judgment. Simply having a valid defence (option 1) or proving that he was out of the country (option 4) are not sufficient on their own without addressing the service issue. Claiming that the case is frivolous (option 3) or agreeing to settle (option 5) are not relevant to the criteria for setting aside a default judgment under the CPR.
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Dr Ioannis Glinavos
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