Roundstone Nurseries Ltd v Stephenson Holdings Ltd [2009] EWHC 1431 (TCC) (10 June 2009)

Roundstone Nurseries Ltd v Stephenson Holdings Ltd [2009] EWHC 1431 (TCC) (10 June 2009)

The default judgment was set aside because Roundstone acted unreasonably in seeking judgment when it was clear Stephenson had a real prospect of defending the claim and both parties had acquiesced in the need for a further stay pending mediation. Stephenson are entitled to the costs of the application to set aside. The costs thrown away by Stephenson's late cancellation of the mediation are recoverable on the standard basis, not indemnity, as the mediation was part of the pre-action protocol process and Stephenson's conduct, while incorrect, was not unreasonable enough to warrant indemnity costs.

Citation
[2009] EWHC 1431 (TCC)
Parties
Claimant: Roundstone Nurseries Limited; Defendant: Stephenson Holdings Limited
Jurisdiction
England and Wales
Judgment Date
10 June 2009
Procedural Posture
Civil Construction Dispute / Post Judgment Applications: Application to Set Aside Default Judgment and Application for Costs
Outcome
Default judgment set aside; costs of application to set aside awarded to Stephenson; Stephenson to pay costs thrown away by cancellation of mediation on standard basis; assessment of such costs deferred.
Legal Topics
Default Judgment, Setting Aside Judgment, Pre Action Protocol, Alternative Dispute Resolution (adr), Costs Orders
Civil Procedure Construction Law Default Judgment Setting Aside Judgment Pre Action Protocol Alternative Dispute Resolution (adr) Costs Orders

Case Brief

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Parties

Roundstone Nurseries Limited

Claimant

Stephenson Holdings Limited

Defendant

Procedural Posture

Civil Construction Dispute / Post Judgment Applications: Application to Set Aside Default Judgment and Application for Costs

Legal Issues

  1. 1 Whether default judgment should be set aside under CPR 13.3
  2. 2 Whether costs should be awarded for the application to set aside
  3. 3 Whether costs thrown away by cancellation of mediation are recoverable and on what basis

Ratio Decidendi

The default judgment was set aside because Roundstone acted unreasonably in seeking judgment when it was clear Stephenson had a real prospect of defending the claim and both parties had acquiesced in the need for a further stay pending mediation. Stephenson are entitled to the costs of the application to set aside. The costs thrown away by Stephenson's late cancellation of the mediation are recoverable on the standard basis, not indemnity, as the mediation was part of the pre-action protocol process and Stephenson's conduct, while incorrect, was not unreasonable enough to warrant indemnity costs.

Court Disposition

Default judgment set aside; costs of application to set aside awarded to Stephenson; Stephenson to pay costs thrown away by cancellation of mediation on standard basis; assessment of such costs deferred.

Orders

  • Default judgment against Stephenson set aside.
  • Stephenson awarded costs of the application to set aside.