Calin v Apoyan, Pelark v Apoyan

The applicants, Calin and Pelark, sought to set aside a default judgment entered against them in favour of the respondent, Apoyan. The dispute arose from a loan agreement, and the default judgment was entered after the applicants failed to file a defence within the prescribed time. The application to set aside the default judgment was heard by Gleeson CJ in chambers.

The primary legal issue before the court was whether the applicants had established sufficient grounds to set aside the default judgment. This required the court to consider whether the applicants had a meritorious defence to the claim and whether they had provided a satisfactory explanation for their failure to file a defence within the time limit. The court also had to determine whether it was in the interests of justice to set aside the judgment.

Gleeson CJ applied the principles governing applications to set aside default judgments. His Honour noted that a party seeking to set aside a default judgment must demonstrate both a defence on the merits and an explanation for the delay. While the applicants had provided an explanation for their delay, which involved a misunderstanding regarding the service of documents and the need for legal advice, Gleeson CJ found that they had not sufficiently demonstrated a defence on the merits. The material before the court did not disclose a real or substantial question to be tried in relation to the loan agreement. Consequently, the court concluded that it was not in the interests of justice to set aside the default judgment.

The application to set aside the default judgment was dismissed.