Bakovski & Anor v Mitrevski

The applicants, Bakovski and Anor, sought to set aside a default judgment obtained by Mitrevski. They argued that the judgment should be vacated due to a failure to properly serve the originating process and that costs should be awarded to them. The application was heard in the Local Court of New South Wales. The primary legal issue before the court was whether the applicants had established grounds for setting aside the default judgment, particularly focusing on the adequacy of the service of the originating process and the entitlement to costs. The court also considered the appropriate exercise of its discretion under the Uniform Civil Procedure Rules 2005 (NSW) concerning setting aside default judgments and awarding costs.

The court examined the service of the originating process and found that there was a procedural irregularity in the service, which was not in accordance with the rules. This irregularity was deemed significant enough to warrant setting aside the default judgment. Additionally, the applicants demonstrated that they had a strong case on the merits, which supported their application for costs. The court considered the status conference outcomes and the overall fairness of the proceedings in exercising its discretion. The court concluded that the applicants had demonstrated sufficient grounds to set aside the default judgment and awarded costs in their favour, emphasising the importance of procedural compliance and fairness in litigation.

The final orders of the court included setting aside the default judgment obtained by Mitrevski and awarding costs to Bakovski and Anor. The court's decision underscored the critical nature of proper service of process and the need for adherence to procedural rules in litigation, particularly in the context of default judgments and cost awards. This case highlights the importance of procedural fairness and the court's role in ensuring that justice is served in accordance with the law.