Lombard North Central Plc v European Skyjets Ltd [2020] EWHC 679 (QB) (20 March 2020)

Lombard North Central Plc v European Skyjets Ltd [2020] EWHC 679 (QB) (20 March 2020)

The appeal was allowed. The Court held that SkyJets had a real prospect of successfully defending the claim on the basis that the notice of default was invalid due to a gross misstatement of arrears, that a de minimis breach may not trigger acceleration in the context of this contract, and that Lombard could not rely on alternative events of default not specified in the notice. The combination of the trivial sum, the misstatement, and the draconian consequences required a trial. The default judgment was set aside.

Citation
[2020] EWHC 679
Parties
Claimant/respondent: Lombard North Central PLC; First Defendant/appellant: European SkyJets Limited (in liquidation); Second Defendant: Stephen Westlake (discontinued)
Jurisdiction
England and Wales
Judgment Date
20 March 2020
Procedural Posture
Appeal / Judgment on Appeal From Refusal to Set Aside Default Judgment
Outcome
Appeal allowed; default judgment set aside.
Legal Topics
Default Judgment, Acceleration Clauses, Penalty Clauses, Relief From Forfeiture, Notice Requirements, Events of Default, Summary Judgment, Restoration of Companies
Contract Law Banking and Finance Law Civil Procedure Default Judgment Acceleration Clauses Penalty Clauses Relief From Forfeiture Notice Requirements +3 more

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Parties

Lombard North Central PLC

Claimant/respondent

European SkyJets Limited (in liquidation)

First Defendant/appellant

Stephen Westlake (discontinued)

Second Defendant

Procedural Posture

Appeal / Judgment on Appeal From Refusal to Set Aside Default Judgment

Legal Issues

  1. 1 Whether the default judgment against SkyJets should be set aside under CPR r13.3
  2. 2 Whether the notice of default and acceleration was valid given the misstatement of arrears
  3. 3 Whether Lombard could rely on alternative events of default not specified in the notice

Ratio Decidendi

The appeal was allowed. The Court held that SkyJets had a real prospect of successfully defending the claim on the basis that the notice of default was invalid due to a gross misstatement of arrears, that a de minimis breach may not trigger acceleration in the context of this contract, and that Lombard could not rely on alternative events of default not specified in the notice. The combination of the trivial sum, the misstatement, and the draconian consequences required a trial. The default judgment was set aside.

Court Disposition

Appeal allowed; default judgment set aside.

Orders

  • Default judgment against European SkyJets Limited set aside.
  • Matter to proceed to trial on the merits.