PALEN & PALEN (No.2)

The Full Court of the Family Court of Australia, constituted by Newbrun J, considered an application by the parties, Palen & Palen, to set aside property adjustment orders previously made on an undefended basis. The core of the dispute concerned the validity and enforceability of these existing orders.

The primary legal issue before the court was whether the property adjustment orders, made pursuant to Rule 16.05(2)(a) of the Family Law Rules, should be set aside. This required the court to determine the appropriate circumstances and legal grounds for rescinding orders that had been granted in the absence of a party's participation.

Newbrun J's reasoning focused on the principles governing the setting aside of default orders in family law proceedings. The court applied the established legal test, which generally requires a party seeking to set aside such orders to demonstrate either that they have a meritorious defence or that there are exceptional circumstances justifying the setting aside. The court considered the evidence presented by the applicants in support of their application, weighing it against the established legal threshold for vacating orders made on an undefended basis.

The court ultimately made orders setting aside the previously made property adjustment orders.