You can enter a default judgment against a defendant if they do not respond to your statement of claim within 28 days. Your legal team will inform you of any kind of response you get from the other side, or lack thereof. If there is no response after 28 days, you can request the court to enter a judgment against the other side. A default judgment is most common in debt recovery cases where the dollar amount you seek is clear, and there is no dispute regarding the debt owed. In these circumstances, the other side may have no defence to raise or be trying to avoid paying the debt by avoiding contact.
This article will explain default judgments and how you can file for one.
What is a Default Judgment?
A default judgment is a judgement that a court enters in your favour. This is usually due to the other side’s failure to:
- file a defence; or
- respond to the statement of claim within 28 days of being served.
To start the process of seeking a default judgment, you need to file a ‘Notice of Motion – Default Judgment’ with a supporting affidavit. This should include information such as:
- details about the person or company that you are seeking judgment against to ensure they are properly identified;
- the amount of money and interest that you are claiming they owe you;
- any particular details about partial payments that have been made to you since the statement of claim were filed; and
- the total amount of costs you are claiming from the other side.
Once the court enters a default judgment, you may still have to enforce it to receive the money you are owed. A default judgment outlines clearly that you now have a right to the money the defendant owes you.
Unfortunately, this will not always result in immediate payment. Your legal team will discuss options regarding payment of debts after the court files a default judgment.
What Do I Need To Do to File for a Default Judgment?
After filing your statement of claim, your legal team will:
- anticipate the 28-day deadline that the other side has to file the defence;
- ensure that there is a valid affidavit of service ready to file; and
- ensure that the final amount you claim from the other side is correct, including any accumulated interest.
Following this, you or your legal team must file the notice of motion with the Court. You will then await confirmation of the judgment. If you are at this stage of the proceedings, there are a few things that your legal team may need you to do. This includes:
- signing your affidavit to indicate your support of the notice of motion for a default judgement; and
- updating your team if you have received any communication from the other side since filing the statement of claim. This includes any partial payments made by the defendant.
Key Takeaways
If you have any questions concerning what to do to file for a default judgment or if you have unpaid invoices, our experienced disputes lawyers can help as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Whether you’re a small business owner or the Chief Financial Officer of an ASX-listed company, one fact remains: your customers need to pay you.
This manual aims to help business owners, financial controllers and credit managers best manage and recover their debt.
Frequently Asked Questions
A default judgment is a judgement the court enters if a party does not file a defence or fails to respond to a statement of claim within 28 days.
Potentially yes. However, this will depend on the unique circumstances of your case. Here, you must also demonstrate a reasonable explanation for the delay beyond 28 days, have a viable defence and demonstrate that once the claim was brought to your attention, you did not delay your application to set aside the judgment.
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