Davey v Costanzo Lawyers Ltd (ACN 158 282 163)

The matter involved an application for judicial review by the first respondent, Costanzo Lawyers Ltd, against a decision of a Magistrate under the Administrative Law Act 1978 (Vic). The respondents sought to set aside a default judgment entered against them by the first respondent, who claimed professional fees and disbursements. The application was heard in the Supreme Court of Victoria. The central legal issue before the court was whether the default judgment should be set aside, specifically if it was entered irregularly. The court also needed to determine whether the cause of action was established on the pleadings, in accordance with the principles outlined in Lau v Citic Australia Commodity Trading Pty Ltd and Lei v Zang.

The court examined the principles established in Lau v Citic Australia Commodity Trading Pty Ltd and Lei v Zang to determine the appropriate test for setting aside a default judgment. The court found that the first respondent had not strictly followed the requirements of the Supreme Court (General Civil Procedure) Rules 2015 (Vic), which necessitated setting aside the default judgment. The court considered that the irregularity in the entry of the default judgment was significant enough to warrant its setting aside, given the principles of natural justice and procedural fairness. The court also noted that the cause of action was not adequately established on the pleadings, which further supported the setting aside of the default judgment. These findings were consistent with the decision in Wheelahan & Anor v City of Casey & Ors (No 12).

Following its reasoning, the court allowed the application for judicial review and granted certiorari to set aside the default judgment. The court's decision was grounded in the principles of procedural fairness and the need to adhere to the rules governing the entry of default judgments. The court's order effectively quashed the default judgment entered by the first respondent and directed that the matter be remitted for further proceedings. This outcome underscores the importance of strict compliance with procedural rules in the administration of justice.