Northern Rock (Asset Management) Plc v Chancellors Associates Ltd

Northern Rock (Asset Management) Plc v Chancellors Associates Ltd

The judgment was irregularly obtained because the Claimant's solicitors used the wrong procedure by requesting judgment administratively on an admission in the Acknowledgement of Service, rather than issuing an application to be considered by a judge. The court has jurisdiction and discretion to set aside such a judgment under CPR Part 3.1(2)(m), and justice requires that it be set aside where the admission was clearly mistaken, there is a properly arguable defence, and no prejudice is caused.

Parties
Claimant: Northern Rock (Asset Management) PLC; Defendant: Chancellors Associates Limited
Jurisdiction
England and Wales
Judgment Date
09 December 2011
Procedural Posture
Civil Professional Negligence / Application to Set Aside Judgment
Outcome
Judgment set aside; matter to proceed to trial
Legal Topics
Setting Aside Judgment, Admissions, Default Judgment, Court Jurisdiction
Civil Procedure Setting Aside Judgment Admissions Default Judgment Court Jurisdiction

Case Brief

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Parties

Northern Rock (Asset Management) PLC

Claimant

Chancellors Associates Limited

Defendant

Procedural Posture

Civil Professional Negligence / Application to Set Aside Judgment

Legal Issues

  1. 1 Whether the court of first instance has jurisdiction to set aside a judgment obtained following an admission in an Acknowledgement of Service
  2. 2 Whether the judgment was irregularly obtained and should be set aside
  3. 3 Whether the Defendant should be permitted to withdraw a mistaken admission

Ratio Decidendi

The judgment was irregularly obtained because the Claimant's solicitors used the wrong procedure by requesting judgment administratively on an admission in the Acknowledgement of Service, rather than issuing an application to be considered by a judge. The court has jurisdiction and discretion to set aside such a judgment under CPR Part 3.1(2)(m), and justice requires that it be set aside where the admission was clearly mistaken, there is a properly arguable defence, and no prejudice is caused.

Court Disposition

Judgment set aside; matter to proceed to trial

Orders

  • The judgment entered on 22 August 2011 is set aside.
  • The Defendant is to serve a Defence in compliance with the rules and supported by a Statement of Truth.