Madden International Limited v Lew Footwear Holdings Pty Ltd

Madden International Limited brought an action against Lew Footwear Holdings Pty Ltd in the Federal Court of Australia, challenging the validity of a licence agreement and seeking various remedies, including damages and an account of profits. Lew Footwear, in turn, applied to set aside the service of the originating process outside Australia, arguing that the plaintiff's claims had no reasonable prospects of success. The primary judge declined to set aside the service, and Lew Footwear sought leave to appeal this decision.

The central legal issue before the court was whether the primary judge erred in law by failing to set aside the service of the originating process outside Australia on the basis that the plaintiff had a 'strongly arguable' case. The applicant also questioned whether the principles of Agar v Hyde applied to the application to set aside service, and whether the appeal had a real prospect of success. The court had to determine if the primary judge's decision was correct and whether the appeal could succeed based on the grounds provided.

The court held that the primary judge did not err in refusing to set aside the service. It found that the plaintiff's claims did not have a strongly arguable case as required by Agar v Hyde, and the principles of that case were applicable to applications to set aside service. The court further concluded that the appeal did not have a real prospect of success. Consequently, the application for leave to appeal was refused. The court's decision was based on the lack of a strongly arguable case and the absence of a real prospect of success on appeal.