Magnate Projects Pty Ltd v Youma Constructions (No 2) Pty Ltd

The case of *Magnate Projects Pty Ltd v Youma Constructions (No 2) Pty Ltd* concerned an appeal from an order of Master Macready setting aside a judgment obtained by Magnate Projects Pty Ltd in the absence of Youma Constructions (No 2) Pty Ltd. The absence of Youma Constructions was attributed to the gross default of its solicitor.

The primary legal issues before the Court of Appeal were whether the Master erred in setting aside the default judgment, the onus on the defendant to demonstrate a defence on the merits, the evidentiary weight of an affidavit verifying a defence, and the relevance of prejudice to the plaintiff and the principal of the plaintiff when considering setting aside such a judgment. The court also considered the appropriate conditions to be imposed when setting aside a judgment obtained due to a solicitor's default.

The Court of Appeal found that the Master had erred in setting aside the judgment. It held that while a defendant bears the onus of showing a defence on the merits, an affidavit verifying the defence is indeed evidence in support of that defence. The court also considered the prejudice to the plaintiff and the principal of the plaintiff, but ultimately determined that the circumstances warranted setting aside the judgment, albeit with significant conditions. The appeal was allowed, and the Master's order was set aside and replaced with new orders. These orders included a requirement for Youma Constructions and Mr. Marsh to pay Magnate Projects $20,000 on account of costs within 28 days, and further conditions regarding security for costs and payment of specific costs on an indemnity basis.