RIDGE v Abard Engineering Pty Ltd

In the matter of *Ridge v Abard Engineering Pty Ltd*, the applicant, Mr Ridge, sought to have a default judgment entered against the respondent, Abard Engineering Pty Ltd, set aside. The dispute arose from an alleged breach of contract, with Mr Ridge claiming that Abard Engineering had failed to pay for services rendered. Abard Engineering had not filed a defence within the prescribed time, leading to the entry of default judgment. The application to set aside this judgment was heard by Judge Riley in the County Court of Victoria.

The central legal issue before the court was whether to exercise its discretion to set aside the default judgment. This required the court to consider whether Abard Engineering had demonstrated a meritorious defence to the claim and whether it had provided a sufficient explanation for its failure to file a defence within the time limit. The court also had to weigh the prejudice to Mr Ridge if the judgment were set aside against the prejudice to Abard Engineering if it were not.

Judge Riley applied the principles governing applications to set aside default judgments, which require a two-limbed test. Firstly, the applicant must show a defence on the merits. Secondly, the applicant must provide a good reason for the delay in filing the defence. In this instance, Abard Engineering contended that it had a defence based on alleged defects in the work performed by Mr Ridge, which would offset the amount claimed. Regarding the delay, Abard Engineering attributed its failure to file a defence to an oversight by its then legal representatives and a subsequent period of internal review. The court considered the evidence presented by both parties regarding the alleged defects and the explanation for the delay, assessing the overall justice of the case.

Ultimately, Judge Riley found that Abard Engineering had presented a sufficiently arguable defence on the merits and had provided a reasonable explanation for its failure to file a defence within the stipulated time. Consequently, the court ordered that the default judgment be set aside, conditional upon Abard Engineering filing its defence and paying the costs of the application.