Khan v The Age Company Pty Ltd

The case of Khan v The Age Company Pty Ltd was heard by the Federal Court of Australia. The plaintiff, Khan, brought a defamation claim against the defendant, The Age Company Pty Ltd, the publisher of The Age newspaper. The primary issue in the case was whether the court should set aside a judgment that had been entered by default under a self-executing order for an affidavit of documents. The defendant had failed to comply with the order, resulting in the default judgment against it.

The legal issues before the court centred on the appropriate considerations for setting aside a default judgment in a defamation case. The court needed to determine the extent to which the defendant’s failure to comply with the order for an affidavit of documents justified setting aside the default judgment. The court also considered the effect of the delay in seeking to set aside the judgment on the balance of convenience and the need to ensure that justice was done in the circumstances. The court further examined the defendant’s prospects of successfully defending the defamation claim and the potential prejudice to both parties if the judgment was set aside.

The court found that the defendant’s failure to comply with the order for an affidavit of documents was a serious breach that warranted setting aside the default judgment. The court held that the defendant's prospects of successfully defending the defamation claim were reasonable, and there was potential prejudice to the defendant if the judgment was not set aside. The court also considered the public interest in the expeditious resolution of defamation disputes and the importance of ensuring that the parties had a fair opportunity to present their cases. Ultimately, the court determined that it was appropriate to set aside the default judgment and restore the defamation claim to the trial list. The court emphasised the importance of strict compliance with court orders and the need for parties to diligently pursue their claims and defences. The final orders of the court included setting aside the default judgment and restoring the defamation claim to the trial list, with directions for the parties to proceed with the discovery process and to endeavour to resolve the matter through alternative dispute resolution if possible.