So someone has issued a court claim against you. What do you do now?
The first step is ensuring you meet all court deadlines. The initial deadline will require you to respond to the claim with a defence (usually within 14 days of service, or 28 days if you file an Acknowledgment of Service). Missing court deadlines can result in default judgment being granted against you, leading to a County Court Judgment (CCJ). A CCJ can have serious consequences, including damage to your business reputation and credit rating.
If a CCJ is entered, act promptly to apply to set it aside. The court will only consider your application if you can provide a valid reason for missing the deadline and a defence with real prospects of success, or another good reason. It is crucial to seek legal advice to ensure your application is properly prepared.
If the claimant obtains a warrant or a writ of control to enforce the judgment, it is advisable to pay the ordered amount to avoid enforcement actions, such as enforcement agents (bailiffs) attending your premises. Paying the judgment does not mean you are admitting liability; it simply prevents further enforcement measures.
Finally, consider settling the matter. Litigation can be costly and time-consuming, and the court expects parties to make reasonable efforts to resolve matters amicably. While it can be tempting to stand on principle, it is often more practical to put aside the principle and focus on reaching a resolution that avoids unnecessary expenses and stress. Resolving disputes efficiently allows you to focus on your business rather than prolonged legal proceedings.
If you receive a claim or a CCJ, contact our litigation team and submit your case to our CIC for assessment: https://www.lawgistics.co.uk/litigation/
Understanding the court process and acting on time can make all the difference to protecting your interests.
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