Melbourne Used Vehicles Pty Ltd v Cars and Co Pty Ltd

Melbourne Used Vehicles Pty Ltd brought an action against Cars and Co Pty Ltd and others, seeking damages and other relief for breach of contract and misleading or deceptive conduct. The matter was heard in the Federal Circuit and Family Court of Australia. The defendants failed to file a Defence within the required time, leading to a default judgment being entered against them. Cars and Co Pty Ltd subsequently applied to set aside the default judgment against two of the defendants, arguing that there were grounds to do so.

The court considered whether there were any grounds to set aside the default judgment, focusing on whether the defendants had a real prospect of successfully defending the claims and whether it was in the interests of justice to set aside the judgment. The court found that the defendants had provided sufficient evidence to demonstrate that they had a real prospect of successfully defending the claims and that it was in the interests of justice to set aside the default judgment against them.

Accordingly, the court varied the default judgment against the first and fourth defendants, directing that the parties bring in Short Minutes of Order within seven days to set out the correct amount of the default judgment. The court also set aside the default judgment against the second and third defendants and ordered that they file a Defence to the Statement of Claim within 14 days. Additionally, the court ordered that the plaintiff pay the second and third defendants’ costs of the motion and that all parties pay their own costs of the remainder of the Notice of Motion.

The orders of the court include varying the default judgment against the first and fourth defendants, setting aside the default judgment against the second and third defendants, and directing the second and third defendants to file a Defence within 14 days. The court also ordered that the plaintiff pay the second and third defendants’ costs of the motion and that all parties pay their own costs of the remainder of the Notice of Motion.