ABANI & ABANI (No.4)

In *Abani & Abani (No.4)*, the applicant sought to set aside a default judgment entered against them in favour of the respondent. The dispute concerned a claim for unpaid rent and damages arising from a commercial lease agreement. The matter came before Obradovic J of the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the applicant had established a sufficient defence to the claim to warrant setting aside the default judgment. This required the Court to consider the principles governing applications to set aside default judgments, particularly the need to demonstrate a meritorious defence and to provide a reasonable explanation for the delay in filing a defence.

Obradovic J applied the well-established principles for setting aside default judgments, which require a party seeking such relief to show both that they have a defence on the merits and that there are circumstances that justify the court exercising its discretion to set aside the judgment. The Court considered the applicant's explanation for failing to file a defence within the prescribed time, which involved allegations of difficulties in obtaining legal advice and the complexity of the case. The Court also examined the material filed by the applicant in support of their defence, assessing whether it disclosed a real prospect of success.

The Court ultimately dismissed the application to set aside the default judgment, finding that the applicant had not provided a satisfactory explanation for their delay and that the defence raised was not sufficiently arguable to justify the extraordinary step of vacating a final judgment.