Pi v Zhou

The parties in this case were Pi, the applicant, and Zhou, the respondent. The dispute centred around an application by Pi to set aside a default judgment that had been entered against them by Zhou. The matter was heard in the Federal Circuit Court of Australia. The applicant sought to overturn the default judgment on the basis of having an arguable defence, which was submitted after the default judgment was entered by the Registrar but before the judgment was formally entered by the court.

The court was required to determine whether Pi had a valid and arguable defence that could warrant the setting aside of the default judgment. The key issue was whether the defence put forward by Pi was sufficient to contest the material contentions in the statement of claim and whether it could be considered arguable on its merits. The court also had to consider the timing of the submission of the defence in relation to the entry of the default judgment.

In reaching its decision, the court held that Pi's defence was indeed arguable and could potentially succeed in defeating the claim. The defence effectively contested the key contentions made in the statement of claim and provided a basis for setting aside the default judgment. The court found that the defence was lodged before the formal entry of the default judgment and was therefore timely. Consequently, the court was satisfied that Pi had established an arguable defence and ordered the default judgment to be set aside, allowing the matter to proceed to a hearing on the merits.