Thiscompany Limited & Ors v David John Welsh & Ors
[2024] EWHC 2159 (Comm)
FXF v English Karate Federation Limited & Anor
26 July 2023
[2023] EWCA Civ 891
Court of Appeal
A karate student sued her club for abuse. The club missed a deadline to defend itself, so the student won by default. The club asked the judge to change the decision and the judge agreed. The student appealed, but the higher court said the first judge was right to let the club defend itself, but warned the club to be more careful in the future.
Key Facts
- •Claimant sought damages for personal injury due to alleged sexual abuse by her karate coach.
- •Defendants (English Karate Federation and Ishinryu Karate Association) were alleged to be vicariously and directly liable.
- •The IKA failed to file a defence within the deadline, resulting in a default judgment against them.
- •The IKA applied to set aside the default judgment under CPR Part 13.3.
- •The Master set aside the judgment, considering the merits and delay.
- •The Claimant appealed, arguing the Master failed to apply the Denton test.
Legal Principles
Denton three-stage test for relief from sanctions applies to setting aside default judgments under CPR Part 13.3.
[2014] EWCA Civ 906 (Denton), [2016] EWCA Civ 141 (Gentry), [2023] EWCA Civ 891 (FXF)
CPR Part 13.3 allows the court to set aside a judgment if the defendant has a real prospect of successfully defending the claim or there is another reason to set it aside. Promptness in applying to set aside is a relevant factor.
CPR Part 13.3
The court's discretion under CPR Part 13.3 is informed by the overriding objective, including the need for efficient litigation and compliance with rules.
CPR Part 1.1, CPR Part 13.3
Outcomes
Appeal dismissed.
The Master correctly applied the Denton test, although not explicitly. The IKA had a real prospect of successfully defending the claim, and while the delay was significant, it did not eclipse the merits. The court upheld the Master’s decision to set aside the default judgment.
PXC v. AB College [2022] EWHC 3571 (KB) overruled.
The court found that the decision in PXC incorrectly stated that the Denton test did not apply to applications to set aside default judgments.