Zehnder v Sell Lease Property Pty Ltd T/As Sell Lease Property and Ors (No.2)

In the matter of *Zehnder v Sell Lease Property Pty Ltd T/As Sell Lease Property and Ors (No.2)*, heard in the District Court of Western Australia, the applicant, Mr. Zehnder, sought to set aside a default judgment entered against him in favour of the respondents, Sell Lease Property Pty Ltd and others. The dispute arose from an alleged breach of a commercial lease agreement, leading to the respondents initiating proceedings and subsequently obtaining a default judgment due to Mr. Zehnder's failure to file a defence.

The primary legal issue before the Court was whether the default judgment should be set aside. This required the Court to consider the principles governing the setting aside of default judgments, specifically the applicant's obligation to demonstrate a meritorious defence and the Court's discretion to grant such relief. The Court also had to assess whether the applicant had provided a sufficient explanation for his failure to file a defence within the prescribed time.

Judge Antoni Lucev applied the well-established principles for setting aside default judgments, which require a two-pronged approach. Firstly, the applicant must show that there is a defence on the merits that has a real prospect of success. Secondly, the Court must be satisfied that it is in the interests of justice to set aside the judgment, considering factors such as the explanation for the delay, the length of the delay, and any prejudice to the respondent. In this instance, the Court found that Mr. Zehnder had not adequately explained his failure to file a defence and had not sufficiently demonstrated a meritorious defence, leading to the refusal of his application.