Bischof & Anor v Werncog Pty Ltd

The case of Bischof & Anor v Werncog Pty Ltd was heard by the Australian Civil and Administrative Tribunal. The dispute involved a claim by the applicants for unpaid lease arrears, interest, and costs from the respondent under the Retail Leases Act 1994. The applicants sought to enforce a default judgment against the respondent for unpaid lease arrears, interest, and costs. The legal issues before the Tribunal were whether the default judgment was enforceable and, if so, whether the amount of interest awarded was appropriate.

The Tribunal found that the default judgment was enforceable and that the applicants were entitled to the principal amount of $3,767.96, plus interest of $2,926.35. The Tribunal held that the respondent had failed to provide any evidence to rebut the presumption that the default judgment was valid and enforceable. The Tribunal also found that the interest rate applied in the default judgment was reasonable and did not exceed the maximum rate permitted by law. The Tribunal rejected the respondent's argument that the interest rate was unconscionable, noting that the parties had agreed to the rate in the lease agreement.

The Tribunal ordered the respondent to pay the applicants the sum of $6,694.31, made up of $3,767.96 as principal and $2,926.35 as interest, within 28 days of the decision. The Tribunal gave the respondent 28 days to file an application for a reduction of the interest award and both parties 28 days to file submissions on costs. The Tribunal noted that any submissions in reply on these matters must be filed within a further 28 days. The Tribunal also noted that any application made under Order 2 or Order 3 would be resolved ‘on the papers’, unless the Tribunal determined otherwise.