What is Summary Judgment?
What is Summary Judgment?
Summary judgment is a formal and binding judgment of a court which has the same effect as a judgment given following a trial, but it is given at an early stage in the proceedings (long before a trial takes place). It is therefore a way for the court to dispose of a case (or individual claim or issue within a case) without a full trial.
The advantage of doing so is that it resolves cases quickly where there is no real prospect of success of one of the parties parties succeeding, which saves time and costs. The procedure is governed by Part 24 of the Civil Procedure Rules.
Who Can Apply?
Either party (claimant or defendant) can ask the court to give summary judgment. Permission can be sought at any stage after an acknowledgment of service, or a defence, has been filed. The court can also grant summary judgment on its own initiative, meaning that it has the inherent power to summarily dispose of a case without either of the parties having to ask.
What is the Test for Granting Summary Judgment?
In order to successfully get summary judgment, a party has to persuade the court that the other party’s case (or a part of it) has “no real prospect of success” and that there is no other compelling reason for the case to proceed to trial.
The burden of proof lies with the applicant, who must show (in basic terms) that the opposing party’s case is very weak or unsustainable.
The standard that has to be reached in order for a case to be allowed to continue (i.e. the “real prospect of success”) is not a difficult standard to achieve. It is a low hurdle. Importantly, the court does not have to be convinced that you will win at trial in order to conclude that your case has a real prospect of success.
Advantages of Summary Judgment
Quick resolution: avoids lengthy litigation when the answer is obvious from the outset.
Cost-effective: saves legal fees and court expenses that would be required if the litigation was allowed to run all the way to trial.
Tactical benefit: a well-timed application for summary judgment can force the other party to disclose its position early, and to critically analyse what evidence it has to support its position. It can break parties from posturing and make them focus on the hard facts.
Multiple applications: a second application can be made if a first application fails but circumstances then change.
Disadvantages and Risks of Summary Judgment
Potential delay: if an application is unsuccessful, it will add a further step to (and therefore potentially extend) the already-lengthy litigation process.
Costs liability: if the application fails, the unsuccessful applicant will probably have to pay its own costs, and the costs of the other party, which were spent on the application.
Court’s discretion: the hurdle for defeating a summary judgment application is low, and a court will likely refuse summary judgment if there are doubts. The court will not conduct a ‘mini-trial’ of the facts, and anything which requires full exploration is likely to defeat the application.
Conclusion
Summary judgment can be an efficient tool to dispose of weak cases early, but the decision rests on the strength of the legal and factual arguments and the courts will be hesitant to grant summary judgment where evidence or key facts remain in dispute. Parties should carefully assess their position before applying or defending against it so as to avoid wasting time/money and taking attention away from the litigation process.
If you are considering, or facing, a summary judgment application in a construction dispute, contact Hamshaw today.