Woods v Baxter

The plaintiff, Woods, commenced defamation proceedings against the defendants, Baxter and others, in the Local Court of New South Wales. The plaintiff sought damages for defamatory statements made by the defendants about Woods. The defendants filed an application to stay the defamation proceedings pending the outcome of related criminal proceedings. The plaintiff subsequently entered a default judgment for a liquidated sum without notifying the defendants. The defendants challenged the regularity of the entry of the judgment and sought to set it aside.

The court had to decide whether the entry of the default judgment was irregular and, if so, whether the judgment should be set aside under Uniform Civil Procedure Rules (UCPR) rule 36.15. The court also had to consider whether the defendants' application to stay the defamation proceedings should be granted, and if not, whether the matter should proceed to trial.

The court found that the entry of the default judgment was irregular because the claim was unliquidated, and the defendants were not given the opportunity to file a defence. The court set aside the default judgment and Garnishee Orders made on 14 and 18 May 2021. The court also directed the plaintiff to pay the statement of claim fee by 19 August 2021. The court did not grant the defendants' application to stay the defamation proceedings but stood over the matter to the Defamation List pending the outcome of the criminal proceedings. The court considered it appropriate to manage the defamation case and the criminal case together to avoid duplication and to ensure that the defendants received a fair trial.

The court's final orders were to set aside the default judgment and Garnishee Orders, direct the plaintiff to pay the SOC fee, and stand over the matter to the Defamation List pending the outcome of the criminal proceedings.