Teague v Phillis

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DISTRICT COURT OF QUEENSLAND

CITATION:

Teague v Phillis [2003] QDC 346

PARTIES:

DONNA MARY TEAGUE

Applicant

and

COLIN ALBERT PHILLIS

Respondent

FILE NO/S:

833/2000

DIVISION:

District Court

PROCEEDING:

Application

ORIGINATING COURT:

Southport

DELIVERED ON:

10th October 2003

DELIVERED AT:

Southport

HEARING DATE:

29th September 2003

JUDGE:

R D Hall DCJ

ORDER:

[1]      I order that the judgment by default of defence made on 23rd February 2001 be set aside and that the defendant have leave to file a defence and counterclaim within 28 days of this date.

   [2]      I order that the defendant pay the plaintiff’s costs thrown away as a result of the judgment being set aside and of this application to be assessed.

CATCHWORDS:

PRACTICE AND PROCEDURE—Setting aside Judgment in default of Defence—Lengthy delay by applicant—Deficits in literacy and limited comprehension skills—Jointly owned land  applicant’s interest divested by Judgment—Liability under Personal covenants continued-Security for Costs not warranted

Cases cited:

re South Downs Packers (1984) 2 Qd R 559
National Mutual Life Association of Australasia v Oasis Developments Pty Ltd (1983) 2 Qd R 441
Yuruga Nursery Proprietary Limited v Australian Tea Tree Management Limited (2000) QSC 297

COUNSEL:

Mr M Eastwood  for the applicant 

Mr S J English for the respondent

SOLICITORS:

Lehns for the applicant 

Bennett & Devery for the respondent

  1. This application filed on 8th September 2003 is for an order to set aside judgment by default entered on 23rd February 2001.    In a statement of claim filed on 4th of October 2000 the plaintiff sought declarations that the defendant held his right title and interest in real and personal property on trust for the plaintiff and an Order that the defendant convey his title and interest in that property to the plaintiff.  No defence was filed and the default judgment ensued. 

  1. The applicant swears that prior to the action solicitors acting for him had forwarded two letters to solicitors for the plaintiff concerning the sale of the jointly owned home.  There was no response to that correspondence and the defendant says that he expected any further action concerning the matter to occur as between the solicitors.  He received the respondent’s claim and statement of claim on 3rd of November 2000.  The documents were “thrown” at him and he did not sign for them.  The only previous court proceedings he had experienced were applications by each of the parties for restraining orders against the other.  The respondent’s application then was served on the applicant by a police officer and he considered the delivery of documents in the manner it was performed lacked the formality he expected of service of official court documents.  He had limited knowledge of court processes and limited ability to read and write.

  1. On about 29th May 2001 he was served with what he now realises were a letter from the respondent’s solicitors, a copy of the default judgment and transfer documents relating to the subject real property. 

  1. He saw what he thought…

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Details
Case
[2003] QDC 346
Decision Date

CaseChat Overview and Summary

In Teague v Phillis, the plaintiff sought to set aside a default judgment that had been entered against the defendant in relation to jointly owned land. The dispute arose after the defendant failed to file a defence, leading to the plaintiff obtaining a judgment that divested the defendant's interest in the property and imposed personal liability for covenants. The defendant applied to set aside the default judgment, citing significant delays and personal factors such as deficits in literacy and limited comprehension skills. The court was tasked with deciding whether the defendant's application should be granted and whether security for costs was warranted.

The court considered the defendant's application under the relevant rules, assessing the delay in filing the application and the merits of the defendant's case. It was noted that the defendant had significant personal challenges, including literacy issues, which contributed to the delay. The court recognised that the defendant's interest in the jointly owned land had been divested by the judgment, and that personal liability for covenants continued. Despite the lengthy delay, the court found that the defendant's application should be granted due to the exceptional circumstances presented, particularly the defendant's personal challenges.

The court ordered that the default judgment be set aside, allowing the defendant to file a defence and counterclaim within 28 days. The defendant was also ordered to pay the plaintiff's costs incurred as a result of the application to set aside the judgment. The court did not find it necessary to impose security for costs, given the circumstances of the case. This decision highlights the court's willingness to consider exceptional personal circumstances in setting aside default judgments, while also emphasising the importance of timely legal action.

Orders

Orders of the court

[1] I order that the judgment by default of defence made on 23rd February 2001 be set aside and that the defendant have leave to file a defence and counterclaim within 28 days of this date.

[2] I order that the defendant pay the plaintiff’s costs thrown away as a result of the judgment being set aside and of this application to be assessed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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