Most people only discover that there is a default judgment against them when their salary is attached or their credit application is declined

Therefore, understanding what a Default judgment is and how it can be removed is an essential part of protecting your financial and legal rights.

What Is a Default Judgment?

Default judgment procedures are regulated under Rule 31 of the Uniform Rules of Court for High Court matters and Rule 12 of the Magistrates’ Courts Rules in terms of the Magistrates’ Courts Act 32 of 1944.

A Default judgment is a court order granted against a person when they fail to defend or respond to legal proceedings within the prescribed period of time. For instance, when a summons is served and no notice of intention to defend or plea is filed, the court may grant judgment in favour of the Plaintiff without hearing the Defendant’s version.

The most common matters where Default judgments are granted:

1. Debt collection;
2. Credit agreement disputes;
3. Loan and account arrears; or
4. Rental and contractual claims.

Understanding the severity of a Default Judgement:

Once a Default judgement is granted, it allows a creditor to take steps to enforce the judgment.

These steps include:

1. Issuing a warrant of execution against property;
2. Attaching movable assets;
3. Garnishee orders; and
4. Listing the judgment with credit bureaus.

What remedy is available after Default Judgment has been granted?

A person may apply to court to have a default judgment set aside, by means of a Rescission application.Recission applications are governed by Rule 31(2)(b) of the Uniform Rules of Court, Rule 49 of the Magistrates’ Courts Rules as well as the court’s common-law rescission powers.

What are the grounds for Rescission of Judgment?

A court will generally rescind a judgment where the Applicant can show:

1. Good cause;
2. The judgment was granted in error;
3. There was a lack of proper notice;
4. Time limits to bring a rescission application.

Conclusion

Rescission applications require properly drafted affidavits, strict compliance with court rules, and a clear legal defence. The court does not grant rescission automatically and the application must be carefully motivated.

Seeking legal advice as soon as you become aware of a judgment significantly improves your prospects of success.