Calandra v Murden

The appeal concerned the power of the Local Court to set aside a judgment entered upon the filing of a costs assessor's certificate. The dispute arose after a costs assessor certified an assessment of party and party costs, and the liability for this costs order was subsequently released by agreement between the parties. Despite this agreement, the costs assessor's certificates were filed in the Local Court, and a judgment was entered. The central question was whether the Local Court possessed the authority to vacate this judgment, particularly in circumstances where no amount of unpaid party and party costs existed at the time of filing.

The Court of Appeal was required to determine whether the Local Court had the power to set aside the judgment. This involved considering whether such power could be exercised under rule 36.15 of the Uniform Civil Procedure Rules, or alternatively, in the exercise of an implied power inherent in the court. The interpretation of section 368(5) of the *Legal Profession Act 2004* (NSW) was also central to the determination of the court's jurisdiction in this matter.

The Court of Appeal found that the Local Court did not have the power to set aside the judgment under rule 36.15 of the Uniform Civil Procedure Rules, nor did it possess an implied power to do so in these circumstances. The Court reasoned that the filing of the costs assessor's certificate in the Local Court did not create a judgment debt where none existed, particularly given the subsequent agreement releasing the liability for costs. Consequently, the appeal was allowed, and the orders made by the Common Law Division were set aside, with the appeal being dismissed.