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Setting Aside Default Judgment: A Lesson in Acting Fast
13 August 2025
In this blog post, we look at a recent court ruling on applications to set aside default judgments (CCJs).
The Court of Appeal granted relief to a defendant who missed an unless order deadline by just one day but took a far tougher stance on another defendant who waited 16 months before applying to set aside a default judgment.
The Leadingway Consultants Ltd v Saab [2025] EWCA Civ 582 case offers two clear reminders for litigants:
- Apply promptly when seeking to set aside a default judgment – waiting too long can be fatal.
- Be precise and careful when complying with an unless order – and never leave compliance until the last minute.
The Case
The dispute stemmed from a €35 million loan made to Saab Financial (Bermuda) Ltd, owned by two brothers. When the company went into liquidation, the brothers allegedly promised to ensure the debt was repaid but failed to do so. The claimant sued both:
- The First Defendant (D1) did not acknowledge service, resulting in default judgment in August 2022.
- The Second Defendant (D2) engaged with proceedings but missed a jurisdiction challenge deadline by one day due to confusion over the date in an unless order.
Both applied for relief: D1 sought to set aside the default judgment (16 months after it was entered), and D2 sought relief from sanctions for late compliance. The High Court granted both applications, but the claimant appealed.
Court of Appeal Decision
- Default Judgment: The Court allowed the appeal against D1. Under CPR 13.3(2), promptness is a key factor when applying to set aside a default judgment. A 16-month delay was unjustifiable, and the fact proceedings continued against D2 did not outweigh this lack of promptness. The so-called “Co-Defendant principle” did not apply here.
- Unless Order Breach: The Court dismissed the appeal against D2. Although breach of an unless order is serious, the delay was minimal, caused by a genuine misunderstanding, and partly due to the claimant’s failure to specify a precise compliance date in the order. The relief granted was within the judge’s discretion.
Key Lessons
- Don’t delay – applications to set aside default judgments must be made promptly, regardless of what is happening with co-defendants.
- Be specific – unless orders should always state a fixed date for compliance. If they don’t, calculate deadlines carefully from the date of the order, not the court seal.
- Avoid last-minute compliance – small errors close to a deadline can have serious consequences.
This decision serves as a practical reminder: procedural rules are there for a reason, and both speed and precision matter.
Our Dispute Resolution team can help if you are seeking to set aside default judgments and remove CCJs. For clear, practical advice, call us on 01202 294411 or get in touch via our contact form: https://www.absolicitors.com/contact
Further Information
