Fortuity Pty Limited v Ereneos (Renos) Savvides

Fortuity Pty Limited (the applicant) sought to set aside a default judgment entered against it in favour of Ereneos (Renos) Savvides (the respondent). The dispute arose from a loan agreement where the applicant alleged it had repaid the loan in full, while the respondent claimed a significant outstanding balance remained. The application to set aside the default judgment was heard in the Supreme Court of Victoria.

The primary legal issue before the Court was whether the applicant had established a meritorious defence to the respondent's claim, which is a prerequisite for setting aside a default judgment. This involved determining whether the applicant's assertion of having repaid the loan in full was capable of being substantiated, and if so, whether it constituted a defence to the respondent's claim for the outstanding amount. The Court also considered whether the applicant had demonstrated a good reason for its failure to file a defence within the prescribed time.

Justice Ian Thompson found that the applicant had failed to demonstrate a meritorious defence. The evidence presented by the applicant regarding the alleged repayment was found to be vague and unsubstantiated, lacking the necessary particularity to raise a triable issue. The Court applied the principles governing applications to set aside default judgments, emphasizing the need for a defence with real prospects of success. Without a meritorious defence, the Court held that it lacked the power to set aside the default judgment.

Consequently, the Court dismissed the applicant's application to set aside the default judgment.