If your Debtor ignores requests for payment and does not offer a defence in a legal matter - Summary Judgment may be open to you

Time and costs are two vital elements of formal legal proceedings that tend to create concern and attention from prospective clients seeking to resolve disputes. Nevertheless, what is often overlooked is the immediacy from which one must approach formal litigation. The principle of judgment in default stems from this immediacy. Judgment in default arises from a defendant in a legal proceeding that takes no action, either through intentional silence or accidental failure to provide a defence, any applicant may request a court to make a judgment regardless of the defendant’s involvement. 

Frequently when outstanding invoices relate to overseas debt the whole process is extremely protracted and it is not at all uncommon for the debtor, not only to ignore requests for payment but to ignore all communications from any source. Giambrone has the advantage of having multi-lingual lawyers with legal and crucially cultural knowledge of a range of European countries and can approach a debtor in their own language and in a manner that is usual in their country.

Giambrone’s dispute resolution team were involved in a case recently where a client seeking a resolution regarding outstanding invoices amounting to significant value. Our client faced a critical crossroad and had to decide whether or not to incur the cost and effort of instructing legal assistance to seek a judgment in default as a resulting from a complete lack of communication from their debtor much less a defence. Our client was, understandably, frustrated. Eventually, the decision was made following the clear and concise legal advice delivered by Giambrone’s dispute resolution team alongside that of Richard Slade of Brick Court Chambers to seek such a judgement.

The initial process led to a hearing whereby, despite statements from the debtor’s representatives that there was sufficient reason to proceed the matter to trial, the judge decided to grant an immediate judgement and ordered the costs be paid to the indebted party. Our client obtained a judgment obliging their debtor to pay immediately but made an additional gain in that the time, effort and cost associated with longer proceedings was avoided. 

The risk-reward nature of seeking summary judgment is certainly an element that can be extrapolated for any individual or organisation seeking to enforce a debt against a party that has failed to respond. Whilst it is essentially the decision is in the hands of the client, and they can make such an analysis as to the potential payoff a summary judgment could bring, it is highly beneficial to seek legal assistance at an early stage.

Advice from lawyers for debt is often perceived as a fixed decision once the indebted party decides on proceeding. However, legal advice comes in all shapes and sizes when it comes to the assessment of a situation. Early-stage legal advice regarding an unresponsive debtor may shorten the whole process as an opinion can be formulated as to how successful a potential summary judgment case may be. The lawyers in Giambrone’s dispute resolution team have a reputation for agile innovative solutions with an emphasis on rapid resolution.

The current commercial climate means that no business can withstand outstanding invoices and protracted negations before the overdue invoice is paid. Through Giambrone’s proven experience in working with clients and barristers alike in the field of summary judgments, the firm has developed an expertise as to how to identify potential matters that can face a swift resolution. 

For more information about summary judgment for an outstanding debt please click here.