Product Development Solutions Australia Pty Ltd v Parametric Technology Corporation

Product Development Solutions Australia Pty Ltd (the applicant) sought leave to appeal from a decision of the primary judge who had granted summary judgment in favour of Parametric Technology Corporation (the respondent) on the respondent's claim and dismissed the applicant's cross-claim. The dispute concerned allegations of misleading or deceptive conduct and unconscionable conduct made by the applicant in its cross-claim, to which the respondent had raised a defence of equitable set-off.

The central legal issue before the Court of Appeal was whether the applicant had raised an arguable defence to the respondent's claim, specifically in relation to the defence of equitable set-off. This required the court to consider whether the applicant's cross-claim, alleging misleading or deceptive and unconscionable conduct, was sufficiently connected to the respondent's claim to warrant equitable set-off, thereby potentially preventing summary judgment.

McColl and Meagher JJA refused the applicant leave to appeal. Their Honours found that the applicant had not demonstrated an arguable defence to the respondent's claim. The court applied principles relating to summary judgment and equitable set-off, determining that the applicant's cross-claim did not establish the necessary connection or mutuality of obligations required for equitable set-off to operate as a defence against the respondent's claim. Consequently, the applicant was ordered to pay the respondent's costs of the application.