Perpetual Trustee Australia Limited v Romeo

In the case of Perpetual Trustee Australia Limited v Romeo, the dispute arose from proceedings for possession of a property that was subject to an asset lending arrangement. The defendant, Romeo, applied to set aside a default judgment obtained by the plaintiff, Perpetual Trustee Australia Limited. The case was heard in the Federal Circuit Court of Australia, with Justice Mortimer presiding. The primary issue before the court was whether Romeo had an arguable defence to the proceedings for possession, specifically whether the contract under which the asset lending arrangement was made was unjust.

Justice Mortimer examined the nature of the asset lending arrangement and the circumstances surrounding its creation. The court considered whether the contract was entered into under a significant inequality of bargaining power and whether the terms of the contract were unfair or unconscionably harsh. The judge concluded that the contract was not unjust, as there was no significant inequality in the bargaining power of the parties, and the terms of the contract were not unfair or harsh. The judge also found that Romeo had failed to provide evidence of an arguable defence to the proceedings for possession.

As a result, the application to set aside the default judgment was dismissed. The court held that the contract was not unjust, and Romeo had not demonstrated an arguable defence to the proceedings for possession. The final orders of the court included the dismissal of the application to set aside the default judgment and the preservation of the default judgment in favour of Perpetual Trustee Australia Limited.