Richmond & Anor v Burch & Ors [2006] EWHC 921 (Ch) (07 April 2006)

Richmond & Anor v Burch & Ors [2006] EWHC 921 (Ch) (07 April 2006)

The Master lacked jurisdiction to set aside a default judgment containing a final injunction as this constituted an order 'relating to' an injunction, which only a Judge may make absent party consent. However, on rehearing, the threshold for setting aside the default judgment under CPR 13.3 was met due to unresolved substantive issues and lack of prejudice from delay. The costs orders were varied to require the defendants to pay the claimants' costs of the assessment and set-aside applications.

Citation
[2006] EWHC 921 (Ch)
Parties
Claimant: Peter Norman Richmond; Claimant: Alpine Taxis Limited; Defendant: David Richard Burch; Defendant: Praisecover Limited; Defendant: Elizabeth Ann Burch
Jurisdiction
England and Wales
Judgment Date
07 April 2006
Procedural Posture
Appeal / Judgment on Appeal Against Master's Order Setting Aside Default Judgment and Costs Orders
Outcome
Appeal allowed in part; Master's orders as to costs varied; default judgment set aside; injunction to continue; further conduct of action to be in Central London County Court.
Legal Topics
Default Judgment, Setting Aside Judgment, Injunctions, Directors' Duties, Costs Orders, Jurisdiction of Masters
Civil Procedure Company Law Equity Default Judgment Setting Aside Judgment Injunctions Directors' Duties Costs Orders +1 more

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Parties

Peter Norman Richmond

Claimant

Alpine Taxis Limited

Claimant

David Richard Burch

Defendant

Praisecover Limited

Defendant

Elizabeth Ann Burch

Defendant

Procedural Posture

Appeal / Judgment on Appeal Against Master's Order Setting Aside Default Judgment and Costs Orders

Legal Issues

  1. 1 Whether the Master had jurisdiction to set aside a default judgment containing a final injunction
  2. 2 Whether the default judgment should be set aside under CPR 13.3
  3. 3 Whether the costs orders made by the Master were correct

Ratio Decidendi

The Master lacked jurisdiction to set aside a default judgment containing a final injunction as this constituted an order 'relating to' an injunction, which only a Judge may make absent party consent. However, on rehearing, the threshold for setting aside the default judgment under CPR 13.3 was met due to unresolved substantive issues and lack of prejudice from delay. The costs orders were varied to require the defendants to pay the claimants' costs of the assessment and set-aside applications.

Court Disposition

Appeal allowed in part; Master's orders as to costs varied; default judgment set aside; injunction to continue; further conduct of action to be in Central London County Court.

Orders

  • Defendants to pay claimants' costs of the assessment application.
  • Defendants to pay claimants' costs of the set-aside application.