A County Court Judgment (CCJ) entered against your business can be both financially and reputationally damaging. We understand how disruptive this can be, particularly for small and medium-sized businesses where even a temporary interruption to cash flow can have far-reaching consequences. A judgment on the record often leads to immediate practical challenges, with many businesses reporting that suppliers contact them within days of receiving notice of a CCJ to change payment terms. This shift can severely impact cash flow and put businesses under significant strain, even where the original debt is in dispute.
In our experience, many judgments are not the result of an actual failure to pay or defend a valid claim, but rather arise because the claim was not acknowledged or responded to in time. This may be due to the claim never being received, perhaps sent to an incorrect or outdated address, or because the operator failed to act within the strict time limits set by the Civil Procedure Rules. The rules provide that a defendant has 14 days to acknowledge service of a claim, and a further 14 days to file a defence. If no response is filed within that timeframe, the claimant may apply to the court for a default judgment without the matter being considered on its merits.
If a judgment has already been entered, there is still an opportunity to apply to the court to have it set aside. This can be done in a number of ways, depending on the circumstances. Where the judgment was entered in error, for example, if a defence had actually been filed on time or the claim was never properly served, the court must set it aside. In other cases, where the court has discretion, a set-aside application may still be granted if there is a real prospect of successfully defending the claim, or another good reason why the judgment should not stand. For instance, if the defendant did not receive the claim form or has made a prompt application upon discovering the judgment, the court may take a sympathetic view.
We urge businesses to act immediately upon receiving a claim form. It is essential to adhere to the time limits set out in the Civil Procedure Rules, and if there is any uncertainty about how to proceed, professional advice should be sought without delay. The longer a party waits, the harder it may be to persuade the court to set aside a judgment. Delay can also increase costs and reduce the likelihood of a favourable outcome.
Our firm is well-placed to assist in setting aside judgments swiftly and effectively. We understand the commercial realities our clients face and work quickly to mitigate the reputational and financial impact of adverse judgments. Whether you have received a claim or discovered a judgment has already been entered against your business, we can help you take control of the situation and move forward with confidence.
If your business is facing a CCJ, contact us today. Early advice and prompt action can make all the difference.
What happens if clandestine entrants are found in my vehicle?
If Border Force discovers clandestine entrants in your vehicle during a port check, Border Force will send out an “ISD11” letter, also known as a request for information, to both the company and the driver which will ask specific questions regarding the circumstances of the incident and the policies and procedures in place to prevent clandestine entry. Border Force will then consider your responses and may then issue a penalty notice to both the company and the driver.
How much could I be fined?
Border Force can impose fines of up to £10,000 per clandestine entrant for both the company and the driver (a cumulative penalty of £20,000). The company is jointly and severally liable to pay the driver’s fine. In cases where multiple entrants are found, penalties can quickly add up—potentially reaching £100,000 or more per incident.
Can I challenge the penalty?
Yes, you can either file a notice of objection, which will be considered by Border Force, or you can appeal straight to the Court. If you appeal to the Court, there is a risk that you may have to pay Border Force’s legal costs, in the event your appeal is not successful.
What evidence do I need to provide?
To reduce or avoid fines, you must show that you and your driver have complied with the regulations. This will include evidencing that your driver has carried out appropriate vehicle security checks and kept a written record of this, use of appropriate security devices such as locks and seals, provision of written instructions and training to drivers. You will also receive a reduced fine if you are a member of the civil penalty accreditation scheme and you have applied the accredited procedures on the journey in question.
How long do I have to respond?
You have 28 days from receiving the penalty notice to submit a response to file a notice of objection or appeal to the Court. If you choose to a file a notice of objection and you do not receive a satisfactory outcome, you will have 28 days from Border Force’s decision to appeal to the Court.
What should I do if I receive a penalty notice?
Act quickly. Contact our Dispute Resolution team at Backhouse Jones as soon as possible. We can assist in responding to the ISD11 and challenging penalties. We can also assist with an application to the clandestine entrant civil penalty accreditation scheme.
If you provide services to a company that becomes insolvent and enters compulsory liquidation, there is a significant risk that payments you receive may be declared void and later required to be repaid.
What is compulsory liquidation?
Compulsory liquidation is a formal insolvency process where a company is ordered by the court to wind up. A liquidator is appointed to realise the company’s assets and distribute the proceeds to creditors.
This process begins when a creditor presents a winding-up petition to the court. A winding-up petition is an application made by a creditor to force a company into liquidation because it cannot pay its debts.
Void payments
After a winding-up petition is presented to the court, the company retains control of its affairs until the court makes a winding up order.
Companies will often continue to trade during the period between the winding up petition and the order form the court. However, any payments made by the company after the petition has been presented are void unless validated by the court.
This rule is intended to prevent one creditor from being paid in preference to others and to ensure fairness among unsecured creditors.
Once a liquidator is appointed, they will demand repayment of all void payments, even where payment was made in good faith for completed services.
Validation orders
A transaction will not be void if the court makes an order validating it. The court can grant a validation order either before the payment is made or retrospectively, after payment has been received.
The court has discretion and will only grant the order if it is satisfied that the company is solvent, or that the transaction is in the interest of the unsecured creditors. The court has made clear that there is no presumption that payments should be validated simply because the the recipient was unaware of the existence of the winding-up petition.
Case example
In a recent case, the liquidators of an insolvent company sought repayment of over £45,000 in void payments made to our client.
Our client had not obtained a validation order before providing the services or receiving payment. However, we successfully argued that the payments were essential to the company’s operations and supported a project that benefited other creditors. As a result, we negotiated a favourable settlement for our client.
Although a favourable outcome was achieved, this situation highlights why it is essential to carry out financial checks on both new and existing customers.
Before starting work or accepting payment, all operators should check whether a company is subject to a winding-up petition. If it is, and you do not apply for a validation order, any payment you receive could later be declared void — and you may be required to repay it.
The opt in period for the RHA’s truck cartel claim closed on 28 February 2025, meaning that operators that have not yet opted into the claim, will not be able to do so.
The next step was for operators that have opted in to provide a download from their vehicle operator licence (VOL), which provided the RHA with a list of vehicles that had been specified on their licence. The last date for operators to provide their VOL information was 14 May 2025. This enabled the RHA to calculate an estimated value of its claim.
It is likely that case management directions will be made in the second half of 2025 which will set out the next steps required to progress the claim in the Competition Appeal Tribunal.
At Backhouse Jones, our Commercial Litigation team is proud to be comprised of five dedicated professionals who bring a wealth of experience and specialist knowledge to a broad range of matters. Among the team are two Solicitors who are also qualified Mediators, Steven Meyerhoff and Libby Pritchard, offering clients a well-rounded approach to dispute resolution.
This month, our spotlight is on Kai Leyland, who qualified into the Commercial Litigation team as a Solicitor in September 2024. Kai started off his career as a Paralegal in the Commercial Litigation and Employment departments in August 2021. Since qualifying, Kai has swiftly established himself as a key member of the department, demonstrating a proactive and meticulous approach to complex legal issues.
Kai’s recent work has included successful clandestine entrant appeals, where he has not only secured positive outcomes for clients but has also successfully obtained reimbursements of legal costs from Border Force, a noteworthy achievement in this challenging area of law. His caseload has also involved disputes concerning fitness for purpose, as well as wider contractual disputes, where his strategic thinking and client-focused attitude have been invaluable.
To learn more about Kai, visit his profile here.
Stay tuned for more team spotlights as we continue to showcase the people who drive our commercial litigation team forward.
The Commercial Litigation team at Backhouse Jones is BACK on the Road, engaging with the transport industry at key events to share legal insights and connect with operators facing complex disputes and claims.
As specialists in handling matters across the commercial transport sector, our team will be attending and speaking at several high-profile industry events over the coming months, including:
We look forward to seeing you on the road and helping keep your business on the right side of the law.
Whether you’re dealing with contractual complexities, enforcement issues, or looking for strategic legal support, our Commercial Litigation team is here to help.