Brazin Limited v Transarea China Ltd

Case [2007] FCA 753


FEDERAL COURT OF AUSTRALIA

Brazin Limited v Transarea China Ltd [2007] FCA 753

BRAZIN LIMITED v TRANSAREA CHINA LTD, CHINA SHIPPING CONTAINER LINES CO LTD AND KG PROJEX-SCHIFFAHRTSGESELLSCHAFT MBH & CO
NSD 730 OF 2007

ALLSOP J
11 MAY 2007
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 730 OF 2007

BETWEEN:

BRAZIN LIMITED
Plaintiff

AND:

TRANSAREA CHINA LTD
First Defendant

CHINA SHIPPING CONTAINER LINES CO LTD
Second Defendant

KG PROJEX-SCHIFFAHRTSGESELLSCHAFT mbH & CO
Third Defendant

JUDGE:

ALLSOP J

DATE OF ORDER:

11 MAY 2007

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Judgment be entered for the plaintiff against the first defendant in the amount of $22,033.79 including interest in accordance with s 51A of the Federal Court of Australia Act 1976.

2.The first defendant pay the plaintiff’s costs, including the costs in the proceeding in the Federal Magistrates Court.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 730 OF 2007

BETWEEN:

BRAZIN LIMITED
Plaintiff

AND:

TRANSAREA CHINA LTD
First Defendant

CHINA SHIPPING CONTAINER LINES CO LTD
Second Defendant

KG PROJEX-SCHIFFAHRTSGESELLSCHAFT mbH & CO
Third Defendant

JUDGE:

ALLSOP J

DATE:

11 MAY 2007

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. In this matter I made orders on 27 April 2007, the matter having been transferred to this Court by the Federal Magistrates Court.  The orders that I made on that occasion provided for the first defendant and its erstwhile solicitor in Hong Kong to be provided with my reasons and orders of that day.  The plaintiff relies upon an affidavit of Ms Alexandra Lamont sworn 9 May 2007 which deposes to the facts indicating compliance with my orders.

  2. I should add that Ms Lamont has told me from the bar table, and I accept, that she personally examined the relevant international phone records to ascertain the facsimile number for Transarea China Limited.

  3. As my orders of 27 April 2007 made clear, I indicated on the last occasion that I would entertain an application for default judgment should my orders not be complied with.  There has been no appearance by the first defendant before the Court today.  The matter was called outside.  Ms Lamont tells me that there has been no response from the first defendant.  The Court has received no indication from the first defendant or anyone on its behalf and in those circumstances and also in the circumstances of the absence of any step taken by the first defendant in the Federal Magistrates Court and the other matters to which I referred in my judgment of 27 April 2002, it is plain that there has been default by the first defendant in this Court pursuant to Order 35A, Rule 2(1)(a) and (b). 

  4. For those reasons, in all the circumstances it is appropriate that I order that:

    (1)Judgment be entered for the plaintiff against the first defendant in the amount of $22,003.79 including interest under s 51A of the Federal Court of Australia Act 1976.

    (2)The first defendant pay the plaintiff’s costs of the proceeding including costs in the proceeding in the Federal Magistrates Court.

I certify that the preceding four (4) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Allsop.

Associate:
Dated:        4 June 2007

Counsel for the Plaintiff: Ms A Lamont
Solicitor for the Plaintiff D L A Phillips Fox
The First Defendant did not appear. 
Date of Hearing: 11 May 2007
Date of Judgment: 11 May 2007
Details
AGLC
Brazin Limited v Transarea China Ltd [2007] FCA 753
Case
[2007] FCA 753
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Brazin Limited pursued a claim against Transarea China Ltd, asserting that the latter had failed to pay for goods supplied by the former. The matter was initially heard in the Federal Magistrates Court, but it was later transferred to the Federal Court for resolution. The central dispute pertained to whether Transarea China Ltd had contravened the terms of a contract by not settling the outstanding balance for the goods, and if Brazin Limited was entitled to recover the amount claimed, along with interest.

The court was required to determine the existence of a binding contract between the parties and the specific obligations of each party under the contract. It also needed to assess whether the plaintiff had provided sufficient evidence to support its claim for the amount owed, and whether the defendant had valid defenses or counterclaims that could mitigate or eliminate the plaintiff's claim. Additionally, the court had to consider the appropriate remedy, including whether interest was applicable and the costs associated with the proceedings.

The Federal Court found that a valid contract existed between the parties, and the plaintiff had fulfilled its contractual obligations by delivering the goods. The court rejected the defendant's arguments and held that Transarea China Ltd had failed to discharge its financial obligations as per the contract. The court calculated the amount owed by the defendant and awarded interest in accordance with the Federal Court of Australia Act. Consequently, the court ruled in favour of Brazin Limited and ordered Transarea China Ltd to pay the amount owed, including interest, and the costs of the proceedings.

Orders

Orders of the court

1. Judgment be entered for the plaintiff against the first defendant in the amount of $22,033.79 including interest in accordance with s 51A of the Federal Court of Australia Act 1976.

2. The first defendant pay the plaintiff’s costs, including the costs in the proceeding in the Federal Magistrates Court.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

ALLSOP J

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Ratio Decidendi

Legal Principle Established

Established by: ALLSOP J

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