CASHFLOW | What is a Stay of Execution?

The term “stay of execution” is a point in time in the?enforcement of the Court’s Order?which stops the?enforcement process. Judgment debtors may make the application in accordance with the Civil Procedure Rules (the “CPR”) in?England and Wales, and if the application is made it may cause an impact on the?enforcement process.

?What is often misunderstood by people making an application for a stay of execution is that the application for a stay is not enough to stop the?enforcement of a judgment or order. The stay itself must be accompanied by an immediate order, to stop the enforcement process.

?Masters in the High Court and District Judges can be asked to make an immediate Order to stop?enforcement?and will, in our experience, grant an order for 24 or 48 hours or a date in the future, for the parties to prepare for a more in-depth hearing in which the merits of the application for a stay of execution will be granted or denied.

?Time For Complying With A Judgment Or Order

Under CPR Part 40.11 the judgment debtor must comply with the?Court’s judgment or order?to pay a sum of money (including any costs awarded) within 14 days of the date of the judgment or order. From the judgment creditor’s point of view, this means that there is a 14-day window given to the Judgment Debtor in which to pay up what is due.

?This will be the situation unless the judgment or order specifies a different date for compliance (including specifying payment by instalments) elsewhere in the CPR, a different date is specified for compliance of the Court’s judgment or order?compliance, or the court has stayed the proceedings or judgment – CPR Parts 12 and 14 specify different dates for complying with certain default judgments and judgments on admissions

?Anticipating a Stay from the Creditor’s Point of View

Judgment Creditors can take steps to prevent a Judgment Debtor from being able to apply for a stay of execution. Stays normally crop up where |

?The Judgment Debtor claims that?proceedings?were not properly served in accordance with Court Rules. It is important that Claimants follow the Rules for service and the Rules on “last known address” to stop this reason from being ground to stay execution

?Check that the chosen enforcement remedy is researched and ticks all the boxes in terms of ownership of assets, location of bank account etc. and that all the Court Rules are complied with

If the enforcement remedy is to take legal control of goods using a?High Court Enforcement Officer?under a?Writ of Control, then always check with the?High Court Enforcement Officer?about what we call “the enforcement strategy”. Which address are you using? Why do you believe goods belonging to the Judgment Debtor are located at that address? If you’re guessing about what may be there, a factor that into your outcome. The more you can verify that goods belonging to the Judgment Debtor are at the?home address, or business address, the more likely you will achieve a positive outcome

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Impact of a stay of execution on enforcement

The impact of a stay of execution is really like pressing the pause button. It gives the Court time to evaluate the merits of why the stay should be made. If a stay is lifted, then?enforcement action?will continue. Unfortunately, sometimes the application for a stay can spin into a long period of delay. But in our experience these situations are rare, and the wisdom and experience of High Court Masters often sort out the situation within days or weeks of an application being made.

?How long does a stay of execution last?

New Rule 62(a) extends the period of the automatic stay to 30 days. This rule reduces any need to rely on inherent power to issue a stay during this period. Setting the period at 30 days coincides with the time for filing most appeals in civil actions, providing a would-be appellant the full period of appeal time to arrange a stay by other means. A 30-day automatic stay also suffices in cases governed by a 60-day appeal period.

?Summing Up

Here at Shergroup, we are always aware that a stay of execution can be made at any time as we start the enforcement process of?High Court enforcement. We have to obey any Order granting a stay of execution even if we are instructed by the Judgment Creditor to?enforce the judgment. This is because our?High Court Enforcement Officer,?Claire Sandbrook, is an Officer of the Court and she must comply with the Court’s Order.

?Claire and her legal team will navigate the stay process for judgment creditors who use our office as their?High Court enforcement?provider. The aim remains to?enforce any judgment?where the Court allows it to go forward. We can handle the entire process with clarity and?compliance?as part of our process.

?To use our?High Court Enforcement process?using a?Writ of Control, use on our contact points

PHONE | 020 3588 4240

EMAIL | [email protected]

CHAT | www.shergroup.com