ACAS settlement reached before default judgment: tribunal sets aside its own decision
A former employee's unfair dismissal claim against West Suffolk Council was settled via ACAS in June 2022, but a default judgment was mistakenly entered in December. The tribunal set it aside after a joint application.
1 min read · Last updated 18 May 2026
Case details
- #acas-settlement
- #cot3
- #default-judgment-set-aside
- #reconsideration
Key facts
- The parties reached an ACAS settlement on 9 June 2022.
- The respondent did not file a response, leading to a default judgment on liability.
- The judge was unaware of the settlement when entering the default judgment.
- The respondent applied for reconsideration jointly with the claimant.
- The reconsideration was granted and the default judgment set aside.
Timeline
-
ACAS settlement reached
The parties entered into a COT3 agreement settling the claim.
-
Default judgment sent
A default judgment on liability was sent to the parties, unaware of the settlement.
-
Reconsideration application
The respondent applied for reconsideration, stating the claim had been settled.
-
Judgment on reconsideration
The tribunal granted reconsideration, set aside the default judgment, and dismissed the claims on withdrawal.
The legal issue
The tribunal had to decide whether to set aside a default judgment that was entered after the parties had already settled the claim through an ACAS COT3 agreement.
The outcome
The tribunal granted the respondent's application for reconsideration and set aside the default judgment. The claims were dismissed on withdrawal following the earlier ACAS settlement.
- No compensation was awarded as the claim had already been settled.
Lessons & takeaways
- If you settle a tribunal claim via ACAS, ensure the tribunal is notified promptly to avoid unnecessary procedural steps.
- A default judgment entered after a settlement can be set aside if both parties agree and the interests of justice require it.
- Tribunals can correct administrative errors like this through the reconsideration process, which is available to either party.
- Always check that the tribunal has recorded your settlement before the case progresses further.
This case highlights what can happen when communication breaks down between the parties and the tribunal. The former employee had already reached a binding settlement with West Suffolk Council through ACAS in June 2022, but the tribunal was not informed. When the council failed to file a response, the judge entered a default judgment on liability in December 2022, unaware that the dispute had already been resolved.
A joint application to correct the record
The council applied for reconsideration, and the former employee joined that application. The judge accepted that the judgment should never have been entered and set it aside. The claims were then formally dismissed on withdrawal, reflecting the original settlement.
What this means for similar cases
This is a procedural cautionary tale. If you settle a claim, make sure the tribunal knows – ideally by filing a formal withdrawal or sending a copy of the COT3 agreement. Otherwise, you may find yourself dealing with unnecessary hearings or judgments. The good news is that the tribunal has power to correct such errors, especially when both parties agree.
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