Key Facts
- •Dispute over a construction contract for works at 24 Northumberland Place, London.
- •Claimant (Simon Bain Building Services Limited) claims £250,112.78 balance owed under an alleged cost-plus agreement.
- •Defendants (Ms Jenna Cardone and Mr Kevin O’Keefe) deny cost-plus agreement, claiming a lump sum contract of £496,000 plus VAT.
- •Claim form issued on 15 September 2022, served on 10 January 2023 at Defendants' former residence (US).
- •Defendants filed Acknowledgement of Service on 20 February 2023, indicating intention to contest jurisdiction, but did not file a Part 11 application within 14 days.
- •Default judgments entered on 16 March 2023 against Defendants.
- •Defendants applied to set aside default judgments on 21 March 2023 and subsequently made a Jurisdiction Application on 28 June 2023.
Legal Principles
CPR r.6.7(1)(b): Mandatory requirement for serving claim form at solicitor's business address when solicitor has notified in writing their instruction to accept service.
CPR
CPR Part 11: Procedure for challenging jurisdiction; requires application within 14 days of Acknowledgement of Service.
CPR
CPR r.3.9: Relief from sanctions for failure to comply with rules.
CPR
CPR r.3.10: Power to rectify errors of procedure.
CPR
CPR r.13.3: Court may set aside default judgment if defendant has a real prospect of successfully defending the claim or there is some other good reason.
CPR
CPR r.11(5): Defendant who fails to apply under Part 11 is treated as accepting jurisdiction.
CPR
Denton v TH White Ltd [2014] 1 WLR 3926: Three-stage test for relief from sanctions (seriousness, explanation, proportionality).
Case Law
Limitation Act 1980, section 5: Actions on simple contract must be brought within six years.
Statute
Limitation Act 1980, section 29(5): Acknowledgement of the claim can affect the accrual of the cause of action.
Statute
Accrual of a cause of action for sums due under a contract for work occurs when the work was provided (unless otherwise stated in the contract).
Case Law
Outcomes
Jurisdiction Application dismissed.
Defendants submitted to the jurisdiction by applying to set aside default judgments under CPR r.13.3, which focused on the merits rather than jurisdiction. The subsequent attempt to challenge jurisdiction was too late.
Default judgments set aside.
Defendants have a real prospect of successfully defending the claim due to potential limitation issues and disputes over the contract's terms. Relief from sanctions granted considering the Claimant's delays and invalid service.
Defendants ordered to file a further Acknowledgement of Service and Defence.
To allow the defence to proceed on the merits, given the setting aside of the default judgments.