Summary Judgment and Strike Out Applications

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James Griffiths - Solicitor

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The notion of issuing a claim and going to court to recover a debt is often problematic for creditors. It is well established that legal costs in litigation and other dispute resolution processes can be significant. Legal costs can be a real cause for concern for creditors and, in many cases, cause them to question the proportionality of even commencing a business debt recovery claim. However, creditors should note that it is rare that debt recovery matters will ever proceed to court.

Furthermore, specific procedures and courses of action can be considered and implemented before trial to facilitate the best possibility of recovering the debt. Two courses of action which may be available are applying to the court for summary judgment and strike out. Those seeking to recover business debts can apply for both summary judgment and strike out if appropriate, which can maximise a creditor’s chances of avoiding a case progressing to trial.


Summary Judgment and Strike Out Applications

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Summary Judgment

Summary judgment is a course of action that creditors may wish to consider. Suppose a creditor has a strong case, and the case for the party defending the claim is particularly weak. In that case, there is the option to apply to the court for summary judgment at an early stage in proceedings, without the delays, stress and costs that will likely be incurred for the matter to reach trial. Effectively, the court will decide on the dispute without a trial.

There are a few factors that the court will consider when granting summary judgment. However, for the court to grant summary judgment, the court must be convinced that:

  1. The claim or issue (or defence to the claim or issue) has no real prospect of success; and
  2. There is no other compelling reason for the claim to proceed to trial.

Successful parties in obtaining summary judgement can expect to receive judgement much sooner than awaiting a trial decision. They can also expect to incur fewer costs as summary judgment applications are normally made before the parties exchange disclosure documents, witness evidence and expert evidence.  

If a summary judgment application is unsuccessful, the claim will proceed to trial unless it can be settled before trial.  

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Summary Judgment

Strike Out

An order for a strike-out is a procedure whereby a party in litigation can apply to strike out an opponent’s case in part or its entirety. This procedure differs from summary judgment because it is concerned with striking out defective statements of the case. The court will only strike out the claim if one of the following factors is satisfied:

  1. Where a party is pursuing or defending a case that has no reasonable basis.
  2. Where there would be a waste of resources on both sides if the litigation continued.
  3. To prevent proceedings which are an abuse of process.
  4. To enforce compliance with the provisions of the Civil Procedure Rules, court orders and directions.  

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Strike Out

Contact Our Business Debt Recovery Team

At Myerson, our Business Debt Recovery Team offers advice on all aspects of business debt recovery law. For more information on the range of legal services we can provide, please fill out the form below or call:

0161 941 4000 

James Griffiths's profile picture

James Griffiths

Solicitor

James has experience acting as a Dispute Resolution solicitor. James has specialist expertise in complex contractual disputes, shareholder/partnership disputes, professional negligence disputes, claims under s423 Insolvency Act 1986 and commercial agency claims.

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