Michell v Cvetkovic

In Michell v Cvetkovic, the applicants sought a default judgment against the defendant in relation to insolvent trading claims. The proceedings were commenced in the Federal Court of Australia by the filing of an originating application supported by a statement of claim. The defendant did not file a defence, or a notice of address for service, and was in default of the Court’s orders. The applicants sought an order for judgment against the defendant for the relief claimed in the statement of claim. The legal issue before the Court was whether the applicants were entitled to the relief sought, pursuant to r 5.23(2)(c) of the Federal Court Rules 2011 (Cth). The Court found that the applicants had complied with all the requirements of r 5.23(2)(c), and that the facts alleged in the statement of claim were sufficient to satisfy the Court that the applicants were entitled to the relief sought. The Court exercised its discretion to grant the applicants’ application for default judgment. The Court ordered the defendant to pay the applicants a sum of money, together with interest, and the applicants’ costs.