Violi v Commonwealth Bank of Australia

The appeal concerned an application by Mr Violi to set aside a default judgment entered against him in favour of the Commonwealth Bank of Australia. The dispute arose from the Bank's claim for moneys allegedly owed by Mr Violi. The primary issues before the Court of Appeal of New South Wales were whether Mr Violi had provided an adequate explanation for his delay in seeking to set aside the default judgment and whether he possessed an arguable defence under the *Contracts Review Act 1980* (NSW).

The Court was required to determine whether the orders for substituted service of the originating process had been complied with by the Bank, and consequently, whether the application for default judgment had met the requirements of the *Uniform Civil Procedure Rules 2005* (NSW). The central question was whether, if these requirements were not met, the default judgment had been entered regularly.

The Court found that Mr Violi had demonstrated an adequate explanation for his delay and had raised an arguable defence under the *Contracts Review Act 1980* (NSW). It was held that the Bank had not satisfied the requirements for substituted service, and therefore, the default judgment had not been entered regularly. Accordingly, the Court granted leave to appeal, allowed the appeal, set aside the default judgment, and ordered that the Bank pay Mr Violi's costs of the application and the appeal.