Judgment in Default
1. Entering Default Judgment
Once litigation commences with the service of a writ on the defendant, a timetable for procedural steps is initiated for each party involved.
If the stipulated time for acknowledging service of the writ lapses without the defendant responding by returning Form 14, the plaintiff can apply for a judgment in default under Rules of the High Court (RHC) Order 13.
This process differs from the procedure outlined in RHC Order 19.
The plaintiff's application must be supported by an affirmation.
If the court approves the application, the resulting judgment is considered valid, legitimate, and enforceable.
The time allowed for acknowledging service of the writ depends on the method of service, whether it was served in person or by post.
2. Setting Aside a Default Judgment
The defendant can apply to set aside the default judgment as per RHC Order 13, rule 9.
This involves an inter partes summons supported by an affirmation, which details the circumstances and explains the reason for the non-response.
The defendant may argue that:
They never received the writ at all.
They received it, but there was a valid reason for not responding.
The procedure for setting aside a judgment under Order 13 depends on whether the judgment is irregular or regular.
3. Irregular Judgment
An irregular judgment occurs when the defendant did not receive notice of the proceedings or if the plaintiff made an error.
Examples of situations leading to irregular judgment:
The writ was sent to an incorrect address.
The defendant was out of Hong Kong when service was attempted via postal service.
An irregular judgment will be set aside without examining the merits of the proposed defense.
However, certain conditions may be imposed, as highlighted in L&M Specialist Construction Ltd v Wo Hing Construction Co Ltd (2000) (CA))
Any imposed conditions must be reasonable, as per Po Kwong Marble Factory Ltd v Wah Yee Decoration Company Ltd [1996].
A common condition is requiring the defendant to make a payment into court.
4. Regular Judgment
A regular judgment is established when the plaintiff is without fault, but the defendant knowingly failed to return Form 14.
To set aside a regular judgment, the defendant must demonstrate merit in their case, which is a significant challenge.
The court retains discretion in deciding whether to set aside a regular judgment.
Premier Fashion Wears Ltd v Li Hing Chung [1994] established that the defense must have a "real prospect of success," exceeding a mere "arguable defence."
If the judgment is set aside, the court can impose specific conditions on the defendant.