Dubai Financial Group Llc v National Private Air Transport Services Company (National Air Services) Ltd

Dubai Financial Group Llc v National Private Air Transport Services Company (National Air Services) Ltd

The default judgment was irregular and must be set aside because the order retrospectively validating alternative service did not 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. There was also an arguable defence on the validity of the option exercise, justifying setting aside the judgment.

Parties
Claimant/respondent/buyer: Dubai Financial Group LLC; Defendant/appellant/seller: National Private Air Transport Services Company (National Air Services) Limited
Jurisdiction
England and Wales
Judgment Date
09 February 2016
Procedural Posture
Civil Appeal (commercial Contract) / Appeal From High Court Decision Refusing to Set Aside Default Judgment
Outcome
Appeal allowed; default judgment set aside.
Legal Topics
Default Judgment, Service of Process, Alternative Service, Setting Aside Judgment, Contractual Options
Civil Procedure Commercial Law Default Judgment Service of Process Alternative Service Setting Aside Judgment Contractual Options

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Parties

Dubai Financial Group LLC

Claimant/respondent/buyer

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

Defendant/appellant/seller

Procedural Posture

Civil Appeal (commercial Contract) / Appeal From High Court Decision Refusing to Set Aside Default Judgment

Legal Issues

  1. 1 Whether default judgment was irregular due to failure to specify time 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 (valid exercise of option/waiver/estoppel)

Ratio Decidendi

The default judgment was irregular and must be set aside because the order retrospectively validating alternative service did not 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. There was also an arguable defence on the validity of the option exercise, justifying setting aside the judgment.

Court Disposition

Appeal allowed; default judgment set aside.

Orders

  • NAS to pay the judgment sum into court or a joint solicitors' account pending resolution of the claim.
  • NAS to have seven days from hand-down to acknowledge service.