PJM LITIGATION & DEBT MANAGEMENT PTY. LTD. v Carmen Flowers & Ors. [2021] NSWDC 119

PJM LITIGATION & DEBT MANAGEMENT PTY. LTD. v Carmen Flowers & Ors. [2021] NSWDC 119

The First Amended Statement of Claim did not disclose a proper cause of action, was embarrassing, and failed to plead material facts necessary to establish why withdrawals from the Association's bank account constituted debts jointly and severally owed by the defendants to the assignors. At the time any defence was due, no reasonable defendant could have ascertained from the pleading whether the amounts claimed were justified or what cause of action was relied upon. Those defects went to the heart of the pleading and constituted an irregularity under UCPR rule 36.15. In the circumstances the defendants did not need to demonstrate an arguable defence, and the default judgment should be set...

Jurisdiction
Australia
Judgment Date
09 April 2021
Procedural Posture
Civil Proceeding Involving Default Judgment on a Purported Debt or Liquidated Claim / Defendants' Notice of Motion Filed 6 November 2020 to Set Aside Default Judgment Entered on 21 September 2018
Outcome
Default judgment entered on 21 September 2018 set aside; costs of the motion were the defendants' costs in the cause; motion otherwise dismissed.
Legal Topics
['default Judgment' 'irregular Judgment' 'ucpr Rule 36.15' 'debt or Liquidated Claim' 'defective Pleading' 'personal Service' 'failure to Plead Material Facts']
['civil Procedure'] ['default Judgment' 'irregular Judgment' 'ucpr Rule 36.15' 'debt or Liquidated Claim' 'defective Pleading' 'personal Service' 'failure to Plead Material Facts']

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Procedural Posture

Civil Proceeding Involving Default Judgment on a Purported Debt or Liquidated Claim / Defendants' Notice of Motion Filed 6 November 2020 to Set Aside Default Judgment Entered on 21 September 2018

Legal Issues

  1. 1 ['Whether the default judgment was entered irregularly because the First Amended Statement of Claim failed to plead material facts and failed properly to plead a debt or liquidated claim.' 'Whether the defendants were required to demonstrate an arguable defence before the default judgment could be set aside.' 'Whether the First Amended Statement of Claim was personally served on the defendants.' 'Whether any delay in bringing the application should prevent the default judgment being set aside.']

Ratio Decidendi

The First Amended Statement of Claim did not disclose a proper cause of action, was embarrassing, and failed to plead material facts necessary to establish why withdrawals from the Association's bank account constituted debts jointly and severally owed by the defendants to the assignors. At the time any defence was due, no reasonable defendant could have ascertained from the pleading whether the amounts claimed were justified or what cause of action was relied upon. Those defects went to the heart of the pleading and constituted an irregularity under UCPR rule 36.15. In the circumstances the defendants did not need to demonstrate an arguable defence, and the default judgment should be set...

Court Disposition

Default judgment entered on 21 September 2018 set aside; costs of the motion were the defendants' costs in the cause; motion otherwise dismissed.

Orders

  • ['Make order 1 in the Notice of Motion filed by the Defendants on 6 November 2020 such that the default judgment entered on 21 September 2018 is set aside.' "The costs of the motion be the defendants' costs in the cause." "The defendants' motion filed 6 November 2020 is otherwise dismissed." "Any party wishing to...