Summary judgment is a course of action that creditors may wish to consider. Suppose a creditor has a strong case, and the case for the party defending the claim is particularly weak. In that case, there is the option to apply to the court for summary judgment at an early stage in proceedings, without the delays, stress and costs that will likely be incurred for the matter to reach trial. Effectively, the court will decide on the dispute without a trial.
There are a few factors that the court will consider when granting summary judgment. However, for the court to grant summary judgment, the court must be convinced that:
- The claim or issue (or defence to the claim or issue) has no real prospect of success; and
- There is no other compelling reason for the claim to proceed to trial.
Successful parties in obtaining summary judgement can expect to receive judgement much sooner than awaiting a trial decision. They can also expect to incur fewer costs as summary judgment applications are normally made before the parties exchange disclosure documents, witness evidence and expert evidence.
If a summary judgment application is unsuccessful, the claim will proceed to trial unless it can be settled before trial.