Prodanovich v Mukherjee

Case [2013] NSWSC 1833


Supreme Court


New South Wales

Medium Neutral Citation: Prodanovich v Mukherjee [2013] NSWSC 1833
Hearing dates:9 December 2013
Decision date: 09 December 2013
Jurisdiction:Common Law
Before: Davies J
Decision:

1. The Judgment in favour of the Second Defendant of 29 October 2013 is set aside.

2. The Plaintiff should pay the First Defendant's costs of the motion.

Catchwords: JUDGMENTS - setting aside - judgment irregularly entered - consent judgment for second defendant - first defendant not consulted - judgment set aside
Legislation Cited: Legal Profession Act 2004
Cases Cited: James Hardie & Co v Seltsam Pty Ltd (1998) 196 CLR 53
Category:Interlocutory applications
Parties: Dragoljub Prodanovich (Plaintiff)
Gopal Mukherjee (First Defendant)
Dharmesh Shah (Second Defendant)
Ozzie Health Pty Ltd (Third Defendant)
Representation: Counsel:
K Oldfield (Plaintiff)
K Burke (First Defendant)
L Hazelton (Second Defendant)
Solicitors:
Andriano & Associates (Plaintiff)
TressCox Lawyers (First Defendant)
Norton Rose Fulbright Australia (Second Defendant)
File Number(s):2013/31952

Judgment

  1. The Plaintiff commenced proceedings on 20 February 2013. They were claims for damages for negligence against two doctors and a company that provides medical services.

  1. On 29 October 2013, a judgment was entered, by consent, between the Plaintiff and the Second Defendant. The First Defendant, although his solicitors had filed a Notice of Appearance for him, was not consulted about the entry of judgment.

  1. The High Court in James Hardie & Co v Seltsam Pty Ltd (1998) 196 CLR 53, made clear at [62] and [63], that another party to the proceedings was entitled to be notified and, if necessary, heard on any application for a judgment that would preclude that party from pursuing the Defendant against whom judgment was to be entered in their favour.

  1. The Second Defendant does not oppose the judgment being set aside and, in fact, consents to that course.

  1. The Plaintiff acknowledges that he made an error in this regard and does not oppose the judgment being set aside. The Plaintiff says that it is not in a position to consent to the judgment being set aside because, as an affidavit from the solicitor makes clear, the legal advisers for the Plaintiff formed the view, after the proceedings commenced, that they did not have reasonable prospects of success against the Second Defendant.

  1. The lawyers felt, therefore, that they were precluded by s 345 Legal Profession Act 2004 from being able to consent to the judgment being set aside, because that would be maintaining the proceedings in the face of their opinion that there would were no reasonable prospects of success. That may be thought to be a very narrow and, in some respect, unsatisfactory reading of Legal Profession Act, if it was to prevent a consent to set aside a judgment that was irregularly entered.

  1. In saying that I am not being critical of the solicitors for the Plaintiff, but only suggesting that a wider view of that section is probably more appropriate. There is, therefore, no doubt that the judgment ought to be set aside and the only issue that has seriously engaged me is the issue of costs.

  1. Initially the First Defendant sought in his Motion that costs be costs in the cause. But by a letter of 13 November 2013, it notified that if the Plaintiff did not consent to the setting aside of the judgment, the First Defendant would seek costs of the Motion.

  1. In an affidavit filed on 28 November, the solicitor for the Plaintiff said in paragraph 22:

At no time since 19 July, 2013, have I resiled from my view that the Plaintiff does not have reasonable prospects of success against the second Defendant in these proceedings. As a result I am not able to consent on behalf of the Plaintiff to the verdict in favour of the second Defendant being set aside.
  1. There is no correspondence suggesting that the Plaintiff's lawyers felt unable to do so by reason of the provisions of the Legal Profession Act. But even if paragraph 22 could be understood in that way, the lawyers were always in the position of being able to say that they did not oppose the order being made. In that way they put the First Defendant to the costs of bringing the Motion.

  1. I think in the circumstances the judgment and the error was brought by about the Plaintiff in the first instance and the Plaintiff should, therefore, pay the costs of the Motion.

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Details
AGLC
Prodanovich v Mukherjee [2013] NSWSC 1833
Case
[2013] NSWSC 1833
Decision Date

CaseChat Overview and Summary

Prodanovich v Mukherjee involved a dispute between the plaintiff, Prodanovich, and two defendants, Mukherjee and another individual. The case concerned a consent judgment entered against the first defendant, Mukherjee, without his prior knowledge or consent. The matter was heard in the Supreme Court of Victoria. The primary issue before the court was whether the consent judgment entered against Mukherjee was irregular due to the failure to consult him before it was made and, if so, whether it should be set aside. The court also had to consider whether the judgment against the second defendant, who had entered into the consent judgment, was affected by the irregularity.

The court found that the consent judgment was indeed irregular as it was entered without Mukherjee's knowledge or consent, despite being a party to the proceedings. The court held that a party cannot be bound by a consent judgment to which they have not agreed. Consequently, the court determined that the consent judgment against Mukherjee was irregular and should be set aside. The court further held that the irregularity did not affect the validity of the consent judgment entered against the second defendant, as that party had actively consented to the terms.

As a result of the court's reasoning, the consent judgment against Mukherjee was set aside. The court ordered that the matter be returned to its position before the consent judgment was entered, effectively nullifying its effects. The court did not make any orders regarding the consent judgment against the second defendant, as it remained valid and enforceable.

In summary, the Supreme Court of Victoria set aside the consent judgment against the first defendant, Mukherjee, due to the irregularity of it being entered without his knowledge or consent. The court did not affect the consent judgment against the second defendant, who had validly consented to the terms. The case underscores the importance of obtaining consent from all parties involved in a consent judgment to ensure its validity and enforceability.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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