John Patrick Sheils v LLeyton Hewitt Marketing Pty Ltd

In the matter of *John Patrick Sheils v LLeyton Hewitt Marketing Pty Ltd*, the applicant, John Patrick Sheils, sought to set aside a default judgment entered against him in favour of the respondent, LLeyton Hewitt Marketing Pty Ltd. The dispute arose from an alleged breach of contract, with the respondent having obtained a default judgment after the applicant failed to file a defence within the prescribed time. The application to set aside the default judgment was heard by Justice Claudia Murray.

The primary legal issue before the Court was whether the applicant had established sufficient grounds to warrant setting aside the default judgment. This required the Court to consider whether the applicant had a meritorious defence to the claim and whether there was a good reason for his failure to file a defence within the time stipulated by the rules. The Court also had to assess whether it was in the interests of justice to grant the application, balancing the applicant's right to have his case heard against the respondent's right to finality.

Justice Murray applied the principles established in cases such as *Colonial Bank of Australasia Ltd v. March* and *Commonwealth Bank of Australia v. Hasham*. Her Honour considered the applicant's affidavit evidence, which detailed the reasons for the delay in filing the defence, including allegations of difficulties in obtaining legal advice and the complexity of the matter. The Court found that the applicant had demonstrated a reasonably arguable defence and that the reasons for the delay, while not entirely excusable, were not so egregious as to preclude the granting of relief. The Court emphasised that a default judgment should generally be set aside where a defendant can show a meritorious defence and provide a reasonable explanation for the delay, unless there are compelling reasons to the contrary.

The Court ordered that the default judgment be set aside, conditional upon the applicant filing his defence within 14 days and paying the respondent's costs thrown away by the application.