Sabra International Pty Ltd v Rael Marcus

Sabra International Pty Ltd (the applicant) sought to set aside a default judgment entered against it in favour of Rael Marcus (the respondent). The dispute arose from an alleged breach of a contract for the sale of goods. The application to set aside the default judgment was heard in the District Court of New South Wales.

The primary legal issue before the court was whether the applicant had established a meritorious defence to the respondent's claim, which is a prerequisite for setting aside a default judgment. The court also considered whether the applicant had demonstrated sufficient grounds to justify setting aside the judgment, including whether it had acted promptly and provided a reasonable explanation for its failure to file a defence within the prescribed time.

In its reasoning, the court applied the principles established in cases such as *Colonial Bank of Australasia Ltd v. Marchant* and *Australian Coal and Shale Employees' Federation v. Commonwealth*. His Honour Judge Forno found that the applicant had failed to demonstrate a defence with a real prospect of success. The court noted that the applicant's affidavit did not sufficiently particularise the alleged defence, leaving it vague and unsubstantiated. Consequently, the court determined that the applicant had not met the threshold required to set aside the default judgment.

The application to set aside the default judgment was dismissed.