Strata Plan 47027 v McGinn

Strata Plan 47027 sought default judgment against McGinn for defamation, alleging McGinn defamed the Strata Plan by publishing false statements on social media. McGinn failed to file a defence or appear in court. The Strata Plan also filed a cross-claim against the social media platform, which was struck out for not pleading publication. The court considered the application for default judgment, the transfer of the defamation cross-claim, and the costs orders. The court dismissed the application for default judgment as the Strata Plan used it as a tactic to pressure McGinn, knowing the proceedings would be defended. The defamation cross-claim was transferred from the Equity Division to the Common Law Division. The court also refused to order indemnity costs payable forthwith, holding both the Strata Plan and cross-defendants responsible for bringing and prolonging the hopeless application.

The court held that the use of default judgment as a tactic, where it was known that the proceedings would be defended, was an abuse of process. The court noted the Strata Plan's conduct in pursuing the default judgment application despite knowing McGinn intended to defend the proceedings. The court also held that the defamation cross-claim should be transferred to the Common Law Division, as it was a claim in tort rather than equity. Finally, the court held that both the Strata Plan and cross-defendants were responsible for bringing and prolonging the hopeless application for indemnity costs, and therefore, refused to order the costs payable forthwith. Instead, the court ordered the costs to be assessed and paid in the usual way.