Ferraro v DBN Holdings Aust PL t/as Sports Auto Group

The applicant, Mr Ferraro, filed an application for a default judgment against the respondent, DBN Holdings Aust PL t/as Sports Auto Group, in the Federal Circuit Court of Australia. Mr Ferraro purchased a vehicle from the respondent, which did not match its description. He notified the respondent that he rejected the vehicle and sought a refund of the purchase price. The respondent did not respond to the proceedings, and the court was required to determine whether Mr Ferraro was entitled to a default judgment and whether all necessary elements of the action were properly pleaded.

The court considered the principles for granting a default judgment, which required Mr Ferraro to demonstrate that he was entitled to the relief claimed and that each element of the action was properly pleaded. The court found that Mr Ferraro had adequately demonstrated his entitlement to relief on the face of the statement of claim and that all elements of the action were properly pleaded. The court also considered whether the respondent's failure to respond to the proceedings justified a default judgment in favour of Mr Ferraro.

The court granted the application for a default judgment in favour of Mr Ferraro. The judgment debt of $111,900.06 consisted of a refund of the purchase price of $107,740 and compensatory damages under s 259(4) of the Australian Consumer Law for losses incurred in connection with the financing, insuring, transporting, and inspection of the vehicle. The court found that these amounts were reasonably foreseeable losses flowing from the respondent's conduct. The court also found that Mr Ferraro had properly pleaded all necessary elements of the action, including the supply of goods in trade or commerce, a major failure to comply with the guarantee contained in s 56 of the Act, and the rejection of the vehicle in accordance with s 259(3)(a).

ORDERS:
1. The applicant’s application for judgment be adjourned to a date and time to be fixed.