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
ApplicantAND: 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
ApplicantAND: TROY KENNETH STRATTI
Respondent
JUDGE:
BUCHANAN J
DATE:
13 FEBRUARY 2009
PLACE:
SYDNEY
REASONS FOR JUDGMENT
BUCHANAN J:
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.
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.
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.
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
- AGLC
- Coast 2 Coast Earthmoving Pty Ltd v Stratti [2009] FCA 130
- Case
- [2009] FCA 130
- Decision Date
CaseChat Overview and Summary
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
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Ratio Decidendi
Legal Principle Established
Established by: BUCHANAN J
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