Default Judgement Received Against Me - Next Step To Take?

[apollo18]

Re: Default Judgement Received Against Me - Next Step To Take?

Is it possible I could be held liable for the claimant's legal costs in attending a set aside hearing if the judge decides not to set aside the judgement?

If I understand correctly, costs in small claims cases are not usually awarded but am I right in believing that at this stage the case has not yet been allocated as a small claim and therefore costs could be claimed?

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

You can but you must make clear to the claimant that is what you are doing - however you'd then likely have a fight to get that money back off the freeholder/claimant if you succeeded in your set aside and defence.

Did you use the fact they have claimed against you twice before and you have defended - resulting in them discontinuing the claim - in your set aside application ? It also gives you back up that you did respond to the previous claims and there is no reason why you wouldn't have on this occasion.

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

Is it possible I could be held liable for the claimant's legal costs in attending a set aside hearing if the judge decides not to set aside the judgement?

If I understand correctly, costs in small claims cases are not usually awarded but am I right in believing that at this stage the case has not yet been allocated as a small claim and therefore costs could be claimed?

Yes you could be liable for some costs - they are likely to be limited though but there is always a risk - is the other side represented ?
Has the claimant indicated they intend to attend and defend your set-aside application ?

[apollo18]

Re: Default Judgement Received Against Me - Next Step To Take?

Yes you could be liable for some costs - they are likely to be limited though but there is always a risk - is the other side represented ?
Has the claimant indicated they intend to attend and defend your set-aside application ?

Yes, the other side is represented by a firm of solicitors which is dealing with the case. They are based in the other end of the country to my local court.

They have not indicated whether they intend attending to defend the set aside application. No hearing date has been given yet, just notification that they have received my set aside application.

i have decided to pay the judgement amount before the month deadline to prevent a CCJ being recorded but to continue to try to get the judgement set aside.

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

Often a solicitors firm will send along a local solicitor, so you'll have to play it by ear for the moment. A solicitors firm is more likely to push for costs and get them awarded by the court, very difficult to guess but possibly around £1500 would be the top whack.

Is their current claim any different to the previous claims they discontinued on? Same cause of action etc?

Just thinking rather than a defence ( again) a strike out app might be more suitable as they discontinued after defence twice before. But then you've another argument and application fee, so you could, as a LIP just include those points within your defence. Have you already sent a draft defence to the court to demonstrate you have a realistic chance of success.

[apollo18]

Re: Default Judgement Received Against Me - Next Step To Take?

Often a solicitors firm will send along a local solicitor, so you'll have to play it by ear for the moment. A solicitors firm is more likely to push for costs and get them awarded by the court, very difficult to guess but possibly around £1500 would be the top whack.

In that case it would not be worth me proceeding with the set aside hearing as that's more than half the value of the claim.

Is their current claim any different to the previous claims they discontinued on? Same cause of action etc?

Practically all of it is the same but with new court fees and arrears charges added to it (about 70% of the value of the claim is made up of legal fees for the current and previous cases, arrears charges and interest. One of the original charges was removed 3 years after the first claim as they admitted they should not have been charging me for it.

Just thinking rather than a defence ( again) a strike out app might be more suitable as they discontinued after defence twice before. But then you've another argument and application fee, so you could, as a LIP just include those points within your defence. Have you already sent a draft defence to the court to demonstrate you have a realistic chance of success.

Yes, I sent in the draft defence with the set aside application and paid the fee.

[apollo18]

Re: Default Judgement Received Against Me - Next Step To Take?

Good morning @Amethyst,
I pm'd you a message yesterday and I wondered if you received it (I hope it was ok to pm you). Thanks

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

They can't claim for court fees and legal costs for a case they discontinued after defence. They really shouldn't be in court again after two discontinuances AFTER defence was submitted.

Costs are only a small risk, if their claim is about £3k then it would be unlikely to be that much or anywhere near, you are protected by being in the small claims court but there is always a small risk and you should be aware of it.

You do sound like you have a good case for this to be set aside and potentially just struck out. It might be an idea to pop up here their claim and your defence as other than the procedural parts we don't know very much about the arrears.

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

Ahh just read your PM.... that is good. They are agreeing to the set aside which means you won't have a CCJ on your file. So you can now decide whether to pay it and bring an end to things, or to continue with your defence.

Make sure you cancel one of those cheques and inform them which cheque has been cancelled and can now be destroyed.

[apollo18]

Re: Default Judgement Received Against Me - Next Step To Take?

Thanks @Amethyst,
Did you receive the direct message I sent you regarding the consent order? I urgently need advice on this if you are able to offer any as I am not sure what my next step should be. Thanks

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

Possibly crossed posts. The consent order sounds fine. You'll need to confirm acceptance to them, they will lodge the consent order with the court, and the judgment will be set aside, you then start preparing your full defence and the case goes back to how it was before default judgment was entered.

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

So we need to look at the case

The charges built up after I disputed an insurance amount and did not pay it

Can you tell us about the dispute on the insurance ?
When you had a dispute re the insurance you stopped paying the ground rent and service charge as well as the insurance part ?


(The previous case court fees cannot be claimed in this claim)

[apollo18]

Re: Default Judgement Received Against Me - Next Step To Take?

Ahh just read your PM.... that is good. They are agreeing to the set aside which means you won't have a CCJ on your file. So you can now decide whether to pay it and bring an end to things, or to continue with your defence.

Make sure you cancel one of those cheques and inform them which cheque has been cancelled and can now be destroyed.

Thanks. Yes, I intend to defend it. As they are not cashing the cheque yet and today is the last day to pay within the required time then would it be safer to pay it by bank transfer to ensure no CCJ will be on my file. I have no evidence to give to the court to show they have received the cheques because the letter was sent without prejudice.

[Amethyst]

Re: Default Judgement Received Against Me - Next Step To Take?

As they have agreed to set aside the Judgment will be removed from your file if it has been entered. As soon as a judgment is set-aside it no longer exists.

[apollo18]

Re: Default Judgement Received Against Me - Next Step To Take?

So we need to look at the case


Can you tell us about the dispute on the insurance ?
When you had a dispute re the insurance you stopped paying the ground rent and service charge as well as the insurance part ?


(The previous case court fees cannot be claimed in this claim)

No, I didn't stop paying the ground rent and service charge (this company ceased collecting service charges a couple of years ago and they now only collect ground rent). They used to collect ground rent twice a year but I think last year started collecting it yearly (I could not find any reference to when it should be demanded/paid in the lease, just that it should be paid when demanded). I was sent a demand for this year's GR but mistakenly only paid half of it. This is the only GR owing (though effectively the half year is up today and the next half would be due tomorrow - should I pay that amount now so all ground rent is dealt with, or leave it as part of the current claim?).