Dubai Financial Group Llc v National Private Air Transport Services Company (National Air Services) Ltd [2016] EWCA Civ 71 (09 February 2016)

Dubai Financial Group Llc v National Private Air Transport Services Company (National Air Services) Ltd [2016] EWCA Civ 71 (09 February 2016)

The default judgment was irregular and must be set aside because the order retrospectively validating alternative service under CPR 6.15(2) failed to specify a period for acknowledgment of service as required by CPR 6.15(4)(c), so the relevant time for acknowledgment had not expired and NAS was not in default. The absence of a response pack did not of itself render the judgment irregular. There was also an arguable defence regarding the exercise of the repurchase option.

Citation
[2016] EWCA Civ 71
Parties
Respondent/claimant/buyer: Dubai Financial Group LLC; Appellant/defendant/seller: National Private Air Transport Services Company (National Air Services) Limited
Jurisdiction
England and Wales
Judgment Date
09 February 2016
Procedural Posture
Appeal (civil) / Appeal From High Court (commercial Court) to Court of Appeal
Outcome
Appeal allowed; default judgment set aside on terms
Legal Topics
Default Judgment, Service of Process, Alternative Service, Setting Aside Judgment, Repurchase Option, Aircraft Sale Agreement

Case Brief

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Parties

Dubai Financial Group LLC

Respondent/claimant/buyer

National Private Air Transport Services Company (National Air Services) Limited

Appellant/defendant/seller

Procedural Posture

Appeal (civil) / Appeal From High Court (commercial Court) to Court of Appeal

  1. 1 Whether default judgment was irregular due to failure to specify period for acknowledgment of service after retrospective validation of alternative service under CPR 6.15(2)
  2. 2 Whether absence of response pack invalidated service or default judgment
  3. 3 Whether there was an arguable defence to the claim regarding exercise of the repurchase option

Ratio Decidendi

The default judgment was irregular and must be set aside because the order retrospectively validating alternative service under CPR 6.15(2) failed to specify a period for acknowledgment of service as required by CPR 6.15(4)(c), so the relevant time for acknowledgment had not expired and NAS was not in default. The absence of a response pack did not of itself render the judgment irregular. There was also an arguable defence regarding the exercise of the repurchase option.

Court Disposition

Appeal allowed; default judgment set aside on terms

Orders

  • Default judgment set aside pursuant to CPR 13.2(a)
  • Sum previously paid by NAS to be paid into court or held in a joint solicitors' account pending resolution of the claim