Gunvor Belgium NV v KAAI 12 N.V. (formerly called Wiljo N.V.)

Where a defendant fails to serve a defence within the period prescribed by the Civil Procedure Rules 1998, the court may enter judgment in default. The claimant remains entitled only to the judgment justified by its statement of case. Declaratory relief is discretionary: the court must be satisfied that granting the declarations will serve a good purpose. A sufficient purpose may exist where the declarations will assist related foreign proceedings.

The claimant served its particulars of claim, but the defendant failed to serve a defence by the applicable deadline and did not attend or appear at the hearing. The claimant sought declarations and its costs. The court had to determine whether judgment in default could be entered, whether the statement of case supported the declarations sought, and whether declaratory relief served a good purpose.

1. The defendant’s time for serving a defence expired on 13 August 2015, and no defence was served. The conditions for judgment in default were therefore satisfied under rules 12.3(2) and 12.4(2)(a) of the Civil Procedure Rules 1998.
2. Under rule 12.11(1), the claimant was entitled to such judgment as appeared justified by its statement of case. The matters pleaded, supported by a statement of truth, established the claimant’s entitlement to the declarations sought.
3. Entry of default judgment did not make declaratory relief automatic. The court retained a discretion because declarations must serve a good purpose.
4. That discretion was satisfied. The declarations would assist the claimant in the Belgian proceedings. The court therefore made the declarations sought.
5. The defendant was ordered to pay the claimant’s costs, summarily assessed at £25,496.50.