Hardy Bros (Earthmoving) Pty Limited v Michael Terrence Turton and Sharon Louise Turton

In the Local Court, Hardy Bros (Earthmoving) Pty Limited initiated proceedings against Michael Terrence Turton and Sharon Louise Turton, claiming a sum of $5,493.37 for services rendered. The defendants failed to respond to the summons, resulting in a judgment by confession being entered against them. Subsequently, the Turtons sought to set aside this judgment, arguing that they had a valid defence and that the amount claimed was insignificant. The court had to determine whether it had the discretion to set aside the judgment and whether the delay in seeking relief and the relatively small amount of the claim impacted its decision.

The court considered whether the Local Court had the power to set aside a judgment by confession after a statement had been entered. It also examined the factors that should influence the exercise of this discretion, including the reasonableness of the delay in seeking relief and the nature of the claim. The court acknowledged that, while it generally has the power to set aside a judgment by confession, the discretion to do so is not unfettered and must be exercised judicially. The court also noted that the small amount of the claim and the delay in seeking relief could be relevant factors in exercising its discretion.

In this instance, the court found that the Turtons had not acted promptly in seeking to set aside the judgment, and the delay in doing so was significant. Despite this, the court recognised that the amount claimed was relatively small. However, the court ultimately concluded that the delay and the amount of the claim did not preclude it from exercising its discretion to set aside the judgment. The court granted the Turtons leave to appeal to the Supreme Court, indicating that the merits of the Turtons' case would be more thoroughly examined in that forum.

The court ordered that the judgment by confession entered against the Turtons be set aside and that the matter be remitted to the Local Court for further hearing. Additionally, the Turtons were granted leave to appeal to the Supreme Court, subject to certain conditions, including the payment of costs and the provision of security. This decision underscores the importance of prompt action in seeking to set aside a judgment by confession and highlights the factors the court will consider in exercising its discretion in such matters.