Webster v Super Smart Strategies Pty Ltd

In the matter of Webster v Super Smart Strategies Pty Ltd, the plaintiffs sought damages for breach of contract and misrepresentations against the defendants. The case was heard in the Supreme Court of New South Wales. The defendants, who were in liquidation, had persistently defaulted in complying with court directions, including failing to engage in court-ordered mediation. This led to the plaintiffs applying for the defendants' defence to be struck out and for a default judgment to be entered, as well as for their cross-claim to be dismissed. The court was tasked with determining whether the defendants' default warranted such measures and whether the imposition of a stay on further proceedings was justified.

The court considered the defendants' repeated failures to comply with court directions and their abandonment of the proceedings, which caused significant prejudice to the plaintiffs. The court held that the defendants' default was severe enough to justify striking out their defence and entering a default judgment. Additionally, the court dismissed the cross-claim, noting that the defendants' conduct warranted this outcome. The court also addressed the issue of costs, making a gross sum costs order rather than assessed costs, and imposed a stay on further proceedings unless and until the cross-defendants' costs were paid, to prevent any further abuse of court processes.

The court's decision underscored the importance of compliance with court directions and the consequences of persistent default. The court found that the defendants' actions warranted the striking out of their defence, the entry of a default judgment, and the dismissal of their cross-claim. The court also ordered that no further proceedings be commenced without leave on the same or similar facts until the cross-defendants' costs were paid. This decision serves as a reminder of the need for parties to adhere to court processes and the potential consequences of failing to do so.

The court ordered that judgment be entered in favour of the plaintiffs, Webster, against Super Smart Strategies Pty Ltd in the sum of $2,500,000 plus interest and costs. The court also ordered that no further proceedings be commenced without leave on the same or similar facts until the cross-defendants' costs were paid. This decision highlighted the importance of compliance with court processes and the consequences of persistent default.