County Court Judgments

Lord Elystan-Morgan Excerpts

Tuesday 11th October 2016 Lords Chamber

[Lord Keen of Elie]

In light of the fact that there have been 1.48 million county court default judgments in the past two years, it does not appear that claimants are being deterred by court fees, which have to be managed in order that the court estate can somehow remain solvent. At the end of the day, court fees are a recoverable element.

[Lord Elystan-Morgan (CB)]

My Lords, I invite the Minister to consider another, equally important aspect of this matter: where no defence has been filed in a situation where a judge would otherwise have had ample scope either to dismiss the claim altogether or to rewrite the matter in a more equitable way, many people who are under severe financial strain are unable to have their side of things put in court. How can that circle be squared, if at all?

[Lord Keen of Elie]

It can be squared by defendants entering an appearance into the court process and putting forward, in any appropriate manner, the defence that they have to the claim. In these circumstances, it would appear that the system works equitably. I point out again the need to balance the interests of claimants, many of which are small and medium-sized enterprises that suffer serious problems of cash flow due to debtors, and the interests of defendants.