Visa Global Logistics Pty Ltd v Zhang

Visa Global Logistics Pty Ltd (the applicant) sought default judgment against Mr Zhang (the respondent) in the Federal Court of Australia. The dispute concerned the carriage of goods by sea, with the applicant alleging that the respondent was indebted to it for freight charges and other associated costs. The applicant sought to enter default judgment on the basis that the respondent had failed to file a defence within the prescribed time.

The primary legal issues before the Court were whether it had jurisdiction to grant the relief sought, whether the respondent was in default of filing a defence, and crucially, whether the amounts claimed by the applicant constituted liquidated damages for the purposes of Rule 13.03B(2)(c)(i) of the Federal Circuit Court Rules 2001 (Cth). This rule governs the entry of default judgment in certain circumstances, requiring the claim to be for a liquidated amount.

Emmett J considered the nature of the applicant's claim. The applicant sought to recover freight charges, demurrage, and other expenses. His Honour noted that for a claim to be considered for liquidated damages, the amount must be capable of being calculated with certainty by reference to the terms of the contract or by a process of calculation. In this instance, the applicant's claim involved various charges that were not precisely ascertainable from the documents provided, and the calculation of demurrage, in particular, was subject to interpretation and potential dispute. Consequently, the Court found that the amounts claimed were not sufficiently liquidated to permit the entry of default judgment under Rule 13.03B(2)(c)(i).

The Court therefore dismissed the application for default judgment.