Sealed Air Australia Pty Limited v Aus-Lid Enterprises Pty Ltd [2018] FCA 716

Sealed Air Australia Pty Limited v Aus-Lid Enterprises Pty Ltd [2018] FCA 716

Aus-Lid Enterprises was in serious default because, as a corporation, it remained unrepresented, had taken no steps in the proceeding since October 2017, had not prosecuted its cross-claim since at least 15 November 2016, and its directors were aware of both the proceeding and the application. The pleaded claims against it were sufficiently pleaded, and its continued nominal but non-co-operating presence had the capacity to unduly prolong the imminent trial and add to costs. The Court therefore exercised its discretion under r 5.23 to enter default judgment and dismiss the cross-claim.

Jurisdiction
Australia
Judgment Date
21 May 2018
Procedural Posture
Interlocutory Application for Default Judgment Against the First Respondent and Dismissal of Its Cross Claim Under R 5.23 of the Federal Court Rules 2011 (cth) / Application Heard Before Trial Listed to Commence on 4 June 2018
Outcome
Interlocutory application granted.
Legal Topics
['default Judgment' 'dismissal of Cross Claim' 'failure to Prosecute or Defend With Due Diligence' 'corporate Party Unrepresented' 'patent Licence Agreement' 'patent Au754978']
['practice and Procedure' 'intellectual Property' 'patents' 'contract' 'misleading or Deceptive Conduct' 'unconscionable Conduct'] ['default Judgment' 'dismissal of Cross Claim' 'failure to Prosecute or Defend With Due Diligence' 'corporate Party Unrepresented' 'patent Licence Agreement' 'patent Au754978']

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Procedural Posture

Interlocutory Application for Default Judgment Against the First Respondent and Dismissal of Its Cross Claim Under R 5.23 of the Federal Court Rules 2011 (cth) / Application Heard Before Trial Listed to Commence on 4 June 2018

Legal Issues

  1. 1 ['Whether Aus-Lid Enterprises Pty Ltd was in default by failing to defend the proceeding or prosecute its cross-claim with due diligence.' 'Whether the Court should exercise its discretion under r 5.23 of the Federal Court Rules 2011 (Cth) to enter default judgment against Aus-Lid Enterprises Pty Ltd and dismiss its cross-claim.']

Ratio Decidendi

Aus-Lid Enterprises was in serious default because, as a corporation, it remained unrepresented, had taken no steps in the proceeding since October 2017, had not prosecuted its cross-claim since at least 15 November 2016, and its directors were aware of both the proceeding and the application. The pleaded claims against it were sufficiently pleaded, and its continued nominal but non-co-operating presence had the capacity to unduly prolong the imminent trial and add to costs. The Court therefore exercised its discretion under r 5.23 to enter default judgment and dismiss the cross-claim.

Court Disposition

Interlocutory application granted.

Orders

  • ['There be default judgment against Aus-Lid Enterprises Pty Ltd with damages to be assessed and costs awarded at the trial of this matter.' 'The cross-claim filed by Aus-Lid Enterprises Pty Ltd on 14 April 2015 be dismissed with costs, as assessed or agreed.' "Aus-Lid Enterprises Pty Ltd pay Sealed Air Australia Pty...