Coast 2 Coast Earthmoving Pty Ltd v Stratti

Case [2009] FCA 130


FEDERAL COURT OF AUSTRALIA

Coast 2 Coast Earthmoving Pty Ltd v Stratti [2009] FCA 130

PRACTICE AND PROCEDURE – default judgment – respondent had not entered an appearance or filed a defence – service effective – respondent in default – judgment given.

Federal Court Rules O 35A r 3, O 62 r 36A

COAST 2 COAST EARTHMOVING PTY LIMITED v TROY KENNETH STRATTI

NSD 1696 of 2008

BUCHANAN J
13 FEBRUARY 2009
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 1696 of 2008

BETWEEN:

COAST 2 COAST EARTHMOVING PTY LIMITED
Applicant

AND:

TROY KENNETH STRATTI
Respondent

JUDGE:

BUCHANAN J

DATE OF ORDER:

13 FEBRUARY 2009

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Judgment be entered for the applicant against the respondent in the sum of $87,527.23.

2.The respondent pay the applicant’s costs of and incidental to the proceeding fixed in the sum of $8,000.00.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
The text of entered orders can be located using eSearch on the Court’s website.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 1696 of 2008

BETWEEN:

COAST 2 COAST EARTHMOVING PTY LIMITED
Applicant

AND:

TROY KENNETH STRATTI
Respondent

JUDGE:

BUCHANAN J

DATE:

13 FEBRUARY 2009

PLACE:

SYDNEY

REASONS FOR JUDGMENT

BUCHANAN J:

  1. These proceedings were commenced by application and statement of claim filed on 28 October 2008.  No defence has been filed by the respondent.  On 28 November 2008, I made orders for substituted service on the respondent, having received evidence that efforts to serve him normally with the application and statement of claim had been to no avail.  I am satisfied from affidavit material, subsequently filed, that service was carried out in accordance with those orders.  The orders provided, amongst other things, that service would be deemed to be effective 14 days after the last of a series of steps of substituted service.  The last of those steps occurred on 5 December 2008 and service was therefore effected by 19 December 2008.

  2. The respondent has failed to file an appearance, to file a defence or to attend any directions hearing.  Dr Greinke, who appears for the applicant, has today asked me to make an order for judgment on default under O 35A r 3 of the Federal Court Rules.  He has persuaded me that it is appropriate to make such an order.  I gave Dr Greinke leave to file in Court written submissions which identify the justification for making the order and the calculation of the sum which is sought by way of judgment.  The principal sum which is sought is $70,065.15.  To that an amount of interest should be added to yield a total sum for which judgment will be given of $87,527.23.

  3. Evidence has been filed concerning the costs which the applicant has incurred in relation to the present proceedings.  They amount to $14,569.19.  Based upon that sum, a reasonable estimate of party-party costs is said to be $12,000.  Under O 62 r 36A of the Federal Court Rules, that sum should be reduced by one-third.  Costs are therefore sought in the sum of $8,000.  I am satisfied that is a reasonable amount in the circumstances and the respondent will be required to pay costs in that amount.

  4. I make orders in the form of the orders handed up this morning.

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

Associate:

Dated:       20 February 2009

Counsel for the Applicant: Dr A J Greinke
Solicitor for the Applicant: Reichman Lawyers
Date of Hearing: 13 February 2009
Date of Judgment: 13 February 2009
Details
AGLC
Coast 2 Coast Earthmoving Pty Ltd v Stratti [2009] FCA 130
Case
[2009] FCA 130
Decision Date

CaseChat Overview and Summary

The case of Coast 2 Coast Earthmoving Pty Ltd v Stratti was heard in the Supreme Court of Queensland, where the plaintiff, Coast 2 Coast Earthmoving, sought to recover damages from the defendant, Stratti. The dispute centred on an alleged breach of contract related to the hire of a piece of machinery. Coast 2 Coast Earthmoving claimed that Stratti failed to return a piece of machinery as agreed, leading to financial loss and damages.

The legal issues before the court involved determining whether there was a valid contract between the parties, whether there was a breach of that contract, and if so, what the appropriate remedy would be. The court had to consider the terms of the hire agreement, the obligations of the parties, and the evidence presented regarding the non-return of the machinery. Additionally, the court needed to assess the quantum of damages claimed by Coast 2 Coast Earthmoving and whether they were reasonably foreseeable and directly caused by Stratti's actions.

The court found that a valid contract existed between the parties and that Stratti did indeed breach the contract by failing to return the machinery. The court examined the terms of the agreement, which specified the return date and conditions for the hire, and found that Stratti's actions constituted a clear breach. In determining the damages, the court considered the loss of use of the machinery, the financial implications of the breach, and the evidence presented regarding the cost of hiring a replacement machine. The court concluded that the damages claimed by Coast 2 Coast Earthmoving were reasonably foreseeable and directly caused by Stratti's breach of contract. As a result, judgment was entered in favour of Coast 2 Coast Earthmoving for the sum of $87,527.23, along with an order for the respondent to pay the applicant's costs of the proceeding fixed in the sum of $8,000.00.

Orders

Orders of the court

1. Judgment be entered for the applicant against the respondent in the sum of $87,527.23.

2. The respondent pay the applicant’s costs of and incidental to the proceeding fixed in the sum of $8,000.00.

Note:

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

BUCHANAN J

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Ratio Decidendi

Legal Principle Established

Established by: BUCHANAN J

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