Lombard North Central Plc v European Skyjets Ltd

Lombard North Central Plc v European Skyjets Ltd

The appeal was allowed and the default judgment set aside because there was a real prospect of a defence on the merits, particularly given the trivial sum in arrears and the misstatement in the notice of default, and because the delay in applying to set aside was largely explained by the dissolution and restoration of the companies. The Deputy Master failed to give adequate weight to the merits and explanations for delay, and a trial is required to resolve the factual disputes.

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
Civil Appeal / Appeal From Refusal to Set Aside Default Judgment
Outcome
Appeal allowed; default judgment set aside
Legal Topics
Default Judgment, Setting Aside Judgment, Loan Agreements, Events of Default, Acceleration Clauses, Penalty Clauses, Relief From Forfeiture, Delay in Applications, Notice Requirements
Contract Law Banking Law Civil Procedure Default Judgment Setting Aside Judgment Loan Agreements Events of Default Acceleration Clauses +4 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

Civil Appeal / Appeal From Refusal to Set Aside Default Judgment

Legal Issues

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

Ratio Decidendi

The appeal was allowed and the default judgment set aside because there was a real prospect of a defence on the merits, particularly given the trivial sum in arrears and the misstatement in the notice of default, and because the delay in applying to set aside was largely explained by the dissolution and restoration of the companies. The Deputy Master failed to give adequate weight to the merits and explanations for delay, and a trial is required to resolve the factual disputes.

Court Disposition

Appeal allowed; default judgment set aside

Orders

  • Default judgment against European SkyJets Limited set aside
  • Directions to be given for further conduct of the proceedings, including counterclaim and joinder issues