Lion Finance Pty Ltd v Tonga

Lion Finance Pty Ltd (the applicant) sought to set aside a default judgment entered against it in favour of Tonga (the respondent). The dispute arose from a loan agreement where the applicant alleged it had not been properly served with the originating process. The application to set aside the default judgment was heard by Judge Burchardt in the Supreme Court of Queensland.

The primary legal issue before the Court was whether the applicant had been properly served with the originating process in accordance with the rules of the Supreme Court of Queensland. This involved determining whether the substituted service effected by the respondent was valid, and if not, whether the default judgment should be set aside.

Judge Burchardt considered the evidence regarding the attempts at personal service and the subsequent application for and execution of substituted service. The Court applied the principles governing substituted service, which require a party seeking such an order to demonstrate that all reasonable efforts have been made to effect personal service and that the proposed method of substituted service is likely to bring the proceedings to the notice of the defendant. The Court found that the respondent had not discharged its onus to prove that the substituted service was effective or that the applicant had actual knowledge of the proceedings. Consequently, the default judgment was set aside.