Enforcement Of Money Judgments - BPC Civil Litigation

Enforcement of money judgments

SUMMARY, ENFORCEMENT

• A judgment creditor can ask for the court’s assistance in discovering the assets available for enforcement by applying to obtain information from the judgment debtor.

• A money judgment can be enforced by:

  1. writ/warrant of control against the judgment debtor’s goods;

  2. by third party debt order against eg a bank account;

  3. by attachment of earnings against the judgment debtor’s salary;

  4. secured by obtaining a charging order (normally on land)

• Each type has its own enforcement procedure (land, goods, injunctions etc)

• Most enforcement procedures are dealt with administratively by the court, EXCEPT, (court orders required for):

  • Third party debt orders;

  • Charging orders;

  • Committal

    • (NB: re writ/warrant of control normally no permission required, except in the situations listed in r83.2, eg 6+ years since judgment; one party died since judgment etc)

• (a) Third Party Debt Orders and (b) Charging Orders have a 2-stage process:

  • Interim orders are sought without notice;

  • Final orders are sought at a final hearing.

• [[so all the 4 types of enforcement mechanism are initially applied for without notice (but then for 3^rd party debt orders and charging orders need orders for second stage of final orders)]

PD40B (Judgments & Orders), para 4, Correction of errors in judgments & Orders

• Where a judgment/order contains an accidental slip or omission a party may apply for it to be corrected.

• The application notice (which may be an informal doc such as a letter) should describe the error, and set out the correction required.

• An application may be dealt with without a hearing if:

  • (1) where the applicant so requests;

  • (2) with the consent of the parties; or

  • (3) where the court does not consider that a hearing would be appropriate.

• The judge may deal with the application without notice IF: the slip/omission is obvious; or may direct notice of the application to be given to the party/parties.

• If the application is opposed it should, if practicable, be listed for hearing before the judge who gave the judgment/made the order.

• The court has an inherent power to vary its own orders, to make the meaning & intention clear.

PD40B, para 8, Orders requiring an act to be done

• (1) An order which requires an act to be done (other than a judgment/order for the payment of an amount of money) MUST specify the time within which the act should be done.

• (2) the consequences of failure to do an act within the specified time may be set out in the order. The wording of the following examples suitably adapted must be used:

  • (1) Unless the [claimant][defendant] serves his list of documents by 4.00pm on Friday, January 22, 1999, his [claim][defence] will be struck out and judgment entered for the [defendant][claimant]; OR

  • (2) Unless the [claimant][defendant] serves his list of docs within 14 days of service of this order his [claimant][defence] will be struck out and judgment entered for the [defendant][claimant].

  • The first example should be used wherever possible (i.e. specifies the date and time more precisely)

CPR PART 70: general rules about enforcement of judgments & orders

CPR 70.1, Scope of this part & interpretation

• (1) This Part contains general rules about enforcement of judgments and orders

  • (Rules about specific methods of enforcement are contained in Parts 71-73, 81, 83, 84, 89)

• (2) In this part and in parts 71-73:

  • “judgment creditor” = a person who has obtained or is entitled to enforce a judgment or order;

  • “judgment debtor” = a person against whom a judgment/order was given or made;

  • “judgment or order” includes an award which the court has:

    • (i) registered for enforcement;

    • (ii) ordered to be enforced; or

    • (iii) given permission to enforce

    • As if it were a judgement or order of the court; and in relation to such an award, “the court which made the judgment or order” means the court which registered the award or made such an order;

  • “Judgment or order for the payment of money”:

    • includes a judgment/order for the payment of costs;

    • but does NOT include a judgment/order for the payment of money into court.

CPR 70.2, Methods of enforcing judgments/orders

• (1) PD70 sets out methods of enforcing judgments/orders for the payment of money.

• (2) a judgment creditor MAY, except where an enactment/rule/PD provides otherwise:

  • (a) use any method of enforcement which is available; and

  • (b) use more than one method of enforcement, either at the same time or one after another (sequentially or sequentially).

PD70, para 1.1, Methods of Enforcing MONEY judgments, r70.2

• 1.1, a judgment creditor may enforce a judgment/order for the payment of money, by any of the following methods:

• 1.1, a judgment creditor may enforce a judgment/order for the payment of money, by any of the following methods:

  1. a writ of control (High Court); or warrant of control (County Court) (see Parts 83-84)

     • [for seizure and sale of the debtor’s goods and chattels to satisfy the judgment debt see Pt 83 re writs & warrants; Pt 84 re taking control of goods];

     • Advantages: quick; cheap; easy

     • Disadvantages: only likely to satisfy a small debt; might not be able to sell the goods; goods are sold at auction (often get less than an open market)

  2. a third party debt order (see Part 72), eg against a bank account;

     • Where a 3^rd party owes money to the judgment debtor

     • Direct payment from 3^rd party to the judgment creditor

     • Advantage: reputable 3^rd party (bank/building society), likely to pay money direct to judgment creditor

     • Disadvantage: cannot get 3^rd party debt orders over joint accounts

  3. a charging order, stop order or stop notice (see Part 73)

     • [a charging order: imposes on property of the debtor a charge for securing the payment of money due];

     • Disadvantages: can be hard to get the money; have to order a sale; could be hard if the property is jointly owned;

     • Any prior charges on the land (eg mortgages) will take priority, the equity on the land might be small

  4. ...