Swiss Partners Pty Ltd & Ors v Jeffcott Holdings

Swiss Partners Pty Ltd and others (the applicants) sought to set aside a default judgment obtained by Jeffcott Holdings (the respondent) in the Supreme Court of Victoria. The dispute arose from an alleged breach of a loan agreement, with the respondent having obtained judgment against the applicants after they failed to file a defence within the prescribed time.

The primary legal issue before Gaudron J was whether the applicants had established a sufficient defence on the merits to warrant setting aside the default judgment. This required the court to consider whether the applicants had demonstrated a *prima facie* case that they had a defence to the respondent's claim, and if so, whether there were any other circumstances that would make it just and equitable to set aside the judgment.

Gaudron J applied the principles established in *Australian Coal and Shale Industry Superannuation Pty Ltd v Adams* and *Colonial Bank v D. & J. Smith*, which require a defendant seeking to set aside a default judgment to show a *prima facie* defence and that it is just and equitable to grant the relief sought. Her Honour found that the applicants had not provided sufficient evidence to establish a *prima facie* defence, noting that the material before the court did not disclose any arguable defence to the claim for repayment of the loan. Consequently, the applicants failed to satisfy the threshold requirement for setting aside the default judgment.

The application to set aside the default judgment was dismissed.