85 Degrees Coffee Australia Pty Ltd v Ji

The plaintiff, 85 Degrees Coffee Australia Pty Ltd, brought an action against the defendant, Ji, seeking recovery of a debt. The case was heard in the Federal Circuit and Family Court of Australia. The plaintiff applied for a default judgment after the defendant failed to file a Defence to the Statement of Claim within the required time. The court was tasked with determining whether the defendant's application to set aside the default judgment was valid, and if so, under what circumstances it should be set aside.

The court considered whether the defendant had a bona fide defence on the merits, which would warrant setting aside the default judgment. The defendant argued that there were genuine issues to be tried, including the characterisation of the parties' agreement as a licence rather than a franchise, and the applicability of certain terms within the agreement. The court had to weigh the evidence and arguments presented to determine if the defendant had a reasonable prospect of successfully defending the claim.

After considering the evidence and arguments, the court found that the defendant had established a prima facie case that it had a bona fide defence on the merits. The court set aside the default judgment and ordered the defendant to file and serve a Defence to the Statement of Claim by a specified date. The court also directed the defendant to pay a portion of the plaintiff's costs and any disbursements related to the registration of the writ of execution. The matter was listed for further directions before the Judicial Registrar.