Bahonko v Sterejov & Ors

Bahonko (the applicant) sought to set aside a default judgment entered against him in favour of Sterejov and others (the respondents). The dispute arose from an alleged breach of contract, with the respondents having obtained default judgment after the applicant failed to file a defence within the prescribed time. The matter came before Crennan J of the Supreme Court of Victoria.

The primary legal issue before the Court was whether the default judgment should be set aside. This required the Court to consider the principles governing the setting aside of default judgments, particularly the applicant's prospects of success in defending the substantive claim and whether it was just and equitable to set aside the judgment.

Crennan J applied the well-established principles for setting aside default judgments. His Honour noted that a party seeking to set aside a default judgment must demonstrate a defence on the merits and provide a reasonable explanation for the failure to file a defence. In this instance, the applicant failed to provide a sufficient explanation for his delay in filing the defence, and his material did not disclose a defence with a real prospect of success. Consequently, the Court found that it was not just and equitable to set aside the default judgment.

The application to set aside the default judgment was dismissed.