Sovereign Point Pty Ltd v Gu

[2019] FCA 1753

FEDERAL COURT OF AUSTRALIA

Sovereign Point Pty Ltd v Gu [2019] FCA 1753

File number:

VID 359 of 2018

Judge:

DAVIES J

Date of judgment:

25 October 2019

Catchwords:

PRACTICE AND PROCEDURE – application for default judgment pursuant to r 5.23(2)(c) of the Federal Court Rules 2011 (Cth) – whether appropriate to make orders sought – failure to appear at multiple case management hearings – failure to file defence – causes of action sufficiently pleaded – application granted

Legislation:

Corporations Act 2001 (Cth) s 1317H

Federal Court Rules 2001 (Cth) rr 5.22, 5.23(2)(c)

Cases cited:

Chamberlain Group, Inc v Giant Alarm System Co, Ltd (No 2) [2019] FCA 1606

Date of hearing:

25 October 2019

Registry:

Victoria

Division:

General Division

National Practice Area:

Commercial and Corporations

Sub-area:

Commercial Contracts, Banking, Finance and Insurance

Category:

Catchwords

Number of paragraphs:

8

Counsel for the First and Second Applicants and Cross-Respondent:

Ms V Bell

Solicitor for the First and Second Applicants and Cross-Respondent:

SBA Law

Counsel for the First and Second Respondents:

The First and Second Respondents did not appear

Solicitor for the Third Respondent and Cross‑Claimant:

Mr Li of HWL Ebsworth Lawyers

ORDERS

VID 359 of 2018

BETWEEN:

SOVEREIGN POINT PTY LTD

First Applicant

AXF DEVELOPMENT (SOVEREIGN POINT) PTY LTD ACN 060 452 762

Second Applicant

AND:

MING FENG (RICHARD) GU

First Respondent

AXF GROUP PTY LTD ACN 116 258 130

Second Respondent

JHATO PTY LTD ACN 606 054 684
Third Respondent

BETWEEN:

JHATO PTY LTD ACN 606 054 684
Cross-Claimant

AND:

SOVEREIGN POINT PTY LTD
Cross-Respondent

JUDGE:	DAVIES J
DATE OF ORDER:	25 OCTOBER 2019

THE COURT ORDERS THAT:

1.There be judgment for the applicant against the first respondent, pursuant to r 5.23(2)(c) of the Federal Court Rules 2011 (Cth) for the relief claimed in the Amended Statement of Claim filed 22 August 2019 nature of compensation pursuant to s 1317H of the Corporations Act 2001 (Cth).

2.There be judgment for the applicant against the second respondent, pursuant to r 5.23(2)(c) of the Federal Court Rules 2011 (Cth) for the relief claimed in the Amended Statement of Claim filed 22 August 2019 in the form of equitable compensation.

3.The matter be referred to a Registrar of the Court for determination of the quantum of compensation.

4.The first and second respondents are to pay the applicant’s costs of and incidental to the proceeding as against those respondents, such costs to be taxed in default of agreement.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT
(Revised from transcript)

DAVIES J:

1. The applicants have applied for default judgment against the first and second respondents pursuant to r 5.23(2)(c) of the Federal Court Rules 2011 (Cth) which provides:

   …

   (2)      If a respondent is in default, an applicant may apply to the Court for:

   …

   (c)if the proceeding was started by an originating application supported by a statement of claim, or if the Court has ordered that the proceeding continue on pleadings –…