Stankovic v Magee

In *Stankovic v Magee*, the New South Wales Court of Appeal considered an appeal against a District Court decision that refused to set aside a default judgment. The default judgment had been entered against the appellant in favour of the respondent, a solicitor, for recovery of legal fees. The judicial registrar had rejected the appellant's application to set aside the default judgment on the basis that it was out of time.

The primary legal issues before the Court of Appeal were whether the time limit stipulated in Rule 36.16 of the Uniform Civil Procedure Rules 2005 (UCPR) restricted the court's power to set aside a default judgment, and if so, whether the appellant had adduced sufficient evidence to demonstrate an arguable defence to the respondent's claim for legal fees. The court also considered the requirements for short form pleading under Rules 14.11 and 14.12 of the UCPR, particularly in relation to the pleading of facts for money claims and the need for particulars.

The Court of Appeal held that the time limit in UCPR Rule 36.16 did not restrict the court's power to set aside a default judgment, but rather was relevant to the exercise of discretion. The court found that the appellant had provided sufficient evidence of an arguable defence. Consequently, the Court of Appeal ordered that the default judgment granted in the District Court be set aside and remitted the matter for further hearing. The respondent was ordered to pay the appellant's costs in the Court of Appeal and was granted a certificate under the Suitors' Fund Act 1951 (NSW) in respect of those costs.