Russo v Westpac Banking Corporation (No.2)

In *Russo v Westpac Banking Corporation (No.2)*, the applicant, Mr. Russo, sought to set aside a default judgment entered against him by the respondent, Westpac Banking Corporation. The dispute arose from an alleged breach of a loan agreement. The application was heard by Judge Manousaridis in the District Court of New South Wales.

The primary legal issue before the court was whether the default judgment should be set aside. This required the court to consider the principles governing applications to set aside default judgments, specifically whether Mr. Russo had a meritorious defence to the claim and whether he had provided a sufficient explanation for his failure to file a defence within the prescribed time.

Judge Manousaridis applied the well-established principles for setting aside default judgments. The court noted that a party seeking to set aside a default judgment must demonstrate both a defence on the merits and that the application is made promptly and with a reasonable explanation for the delay. While Mr. Russo asserted a defence, the court found that his explanation for failing to file a defence was inadequate, particularly given his prior experience with legal proceedings and the clear communication from Westpac regarding the impending default judgment. The court emphasised that a mere assertion of a defence is insufficient without a credible explanation for the default.

Consequently, the court dismissed the application to set aside the default judgment.