Wood v Semantic Software Asia Pacific Pty Ltd

Wood (the applicant) sought to set aside a default judgment obtained by Semantic Software Asia Pacific Pty Ltd (the respondent) in the Supreme Court of New South Wales. The dispute arose from an alleged breach of contract, with the respondent claiming the applicant failed to pay for software and related services. The applicant sought to have the default judgment, entered after they failed to file a defence within the prescribed time, set aside.

The primary legal issue before Manousaridis J was whether the applicant had established a meritorious defence to the respondent's claim, which is a prerequisite for setting aside a default judgment. The applicant also contended that the default judgment should be set aside on the grounds of irregularity, arguing that the respondent had not properly served the statement of claim.

Manousaridis J considered the applicant's proposed defence, which alleged that the software provided was not fit for purpose and that the respondent had failed to rectify defects. His Honour found that the defence, as pleaded, disclosed a real question to be tried and therefore had sufficient merit. Regarding service, the court examined the evidence of attempted service and found that the respondent had taken reasonable steps to bring the proceedings to the applicant's attention, satisfying the requirements for service.

Ultimately, Manousaridis J ordered that the default judgment be set aside, conditional upon the applicant filing and serving a defence within 14 days and paying the respondent's costs thrown away by the application.