Paseana Ltd v Lextrex Holdings Ltd & Ors

Paseana Ltd v Lextrex Holdings Ltd & Ors

The judge erred by treating inaccurate or dishonest explanations for default as determinative and failing to properly balance all circumstances, including the substance of the draft defence, which showed a real prospect of success. The default judgments should be set aside, subject to a payment into court as a condition for further defence.

Parties
Appellant: Paseana Ltd; Respondent: Lextrex Holdings Ltd & Ors
Jurisdiction
England and Wales
Judgment Date
30 November 2010
Procedural Posture
Civil Appeal / Appeal From County Court Judgment Refusing to Set Aside Default Judgments
Outcome
Appeal allowed; default judgments set aside subject to condition.
Legal Topics
Default Judgment, Setting Aside Judgment, CPR 13.3, Relief From Sanctions
Civil Procedure Default Judgment Setting Aside Judgment CPR 13.3 Relief From Sanctions

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Parties

Paseana Ltd

Appellant

Lextrex Holdings Ltd & Ors

Respondent

Procedural Posture

Civil Appeal / Appeal From County Court Judgment Refusing to Set Aside Default Judgments

Legal Issues

  1. 1 Whether the County Court judge erred in refusing to set aside default judgments against guarantors under CPR 13.3
  2. 2 Whether inaccurate or dishonest explanations for default are determinative in applications to set aside judgment
  3. 3 Whether the draft defence disclosed a real prospect of successfully defending the claim

Ratio Decidendi

The judge erred by treating inaccurate or dishonest explanations for default as determinative and failing to properly balance all circumstances, including the substance of the draft defence, which showed a real prospect of success. The default judgments should be set aside, subject to a payment into court as a condition for further defence.

Court Disposition

Appeal allowed; default judgments set aside subject to condition.

Orders

  • Default judgments against Mr Evans and Mr Ellison set aside.
  • Future defence of the action conditional upon payment into court of £5,000 within 14 days.