Thiscompany Limited & Ors v David John Welsh & Ors
[2024] EWHC 2159 (Comm)
Stephen Joseph Redmond v Declan Patrick O'Hara
24 January 2024
[2024] EWHC 99 (Comm)
High Court
Someone didn't pay back a loan, and a court gave the lender a win automatically. The borrower said he never got the papers, was depressed and had the money paid back by a friend, but didn't properly present this evidence to the court. The judge let the borrower fight back, but kept a hold on the borrower's house until the case was finished.
Key Facts
- •Defendant applied to set aside a default judgment for £221,968.48 plus interest and costs.
- •Claimant subsequently obtained a charging order and order for sale of the Defendant's property.
- •Defendant claims he was not served properly as he was living in Ireland during the relevant period.
- •Defendant alleges serious counterclaims against the Claimant involving millions of pounds and threats from the IRA.
- •Defendant claims repayment of the alleged loan by a third party.
- •The court had difficulty piecing together the chronology due to illegible documents and lack of clear accounts from both parties.
Legal Principles
Setting aside default judgments under CPR 13.3(1)(a)
CPR 13.3(1)(a)
Relief from sanctions under Denton v White [2014] EWCA Civ 906
Denton v White [2014] EWCA Civ 906
Outcomes
Defendant's application to set aside the default judgment was granted.
The judge found that the Defendant had a real prospect of successfully defending the claim based on evidence suggesting repayment of the loan, despite procedural irregularities and delays.
Condition imposed on the grant of leave to defend.
The charging order will remain in place pending the trial.
Defendant's unsubstantiated allegations regarding IRA involvement and extortion were not considered sufficient for setting aside the judgment independently.
The allegations were not properly pleaded or particularised.