TSW Analytical Pty Ltd v The University of Western Australia

In the case of TSW Analytical Pty Ltd v The University of Western Australia, the appellant, TSW Analytical Pty Ltd, sought leave to appeal against the dismissal of their application to set aside a default judgment entered in favour of the respondent, The University of Western Australia. The primary dispute involved a research grant and funding agreement, whereby the respondent alleged the appellant had failed to pay certain sums related to infrastructure resources and funding. After the appellant failed to appear in response to the proceedings, the respondent entered a default judgment. The appellant subsequently filed an application to set aside the default judgment, which was dismissed both by a deputy registrar and the primary judge. The appellant argued that the primary judge erred in finding that it had no arguable defence to the respondent’s claim and that it should be granted leave to defend the action.

The legal issues before the court encompassed whether the primary judge erred in determining that the appellant had no arguable defence to the respondent’s claim and whether fresh evidence should be admitted on appeal. The appellant contended that the research grant and funding agreement did not stand alone but was part of a broader arrangement between the parties. It further argued that it had a counterclaim and equitable set-off for work and materials provided to the respondent outside the agreement, entitling it to recover by way of a quantum meruit. The court had to consider whether these arguments constituted an arguable defence and if the primary judge’s findings on this matter were correct.

The court concluded that the appellant had demonstrated sufficient grounds for leave to appeal under the Supreme Court Act 1935 (WA). The court found that the primary judge’s assessment of the arguable defence was flawed, as it overlooked the broader relationship between the parties and the potential for a quantum meruit claim. Consequently, the court granted leave to appeal, allowed the appeal, set aside the decisions of the primary judge and the deputy registrar, and set aside the default judgment. The court also granted the appellant unconditional leave to defend the action, recognising the merits of the appellant’s arguments regarding the broader relationship and the potential for a quantum meruit claim.