Cash Bazaar Pty Ltd v RAA Consults Pty Ltd (No 3) [2020] FCA 1115

Cash Bazaar Pty Ltd v RAA Consults Pty Ltd (No 3) [2020] FCA 1115

Default judgment was entered against the sixth respondent based on a misapprehension of facts, specifically regarding his alleged misleading representations and the facts underlying the applicants' claim. Findings in subsequent trial undermined the integrity of the default judgment. Accordingly, the judgment should be set aside to avoid injustice.

Parties
Applicant: Cash Bazaar Pty Ltd; Applicant: Rajesh Patel; Respondent: RAA Consults Pty Ltd; Respondent: Express Business Group MMF Victoria Pty Ltd; Respondent: Reece Arcon; Respondent: Rhys Scutts in his capacity as the executor of the estate of Peter Scutts; Respondent: Lloyd Roberts; Respondent: Jai Mansfield; Respondent: Ross Scutts
Jurisdiction
Australia
Judgment Date
05 August 2020
Procedural Posture
Civil / Application to Set Aside Default Judgment
Outcome
Default judgment against the sixth respondent set aside; proceeding against him dismissed with no order as to costs.
Legal Topics
Setting Aside Default Judgment, Misleading and Deceptive Conduct, Finality of Litigation
Practice and Procedure Commercial Law Setting Aside Default Judgment Misleading and Deceptive Conduct Finality of Litigation

Case Brief

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Parties

Cash Bazaar Pty Ltd

Applicant

Rajesh Patel

Applicant

RAA Consults Pty Ltd

Respondent

Express Business Group MMF Victoria Pty Ltd

Respondent

Reece Arcon

Respondent

Rhys Scutts in his capacity as the executor of the estate of Peter Scutts

Respondent

Lloyd Roberts

Respondent

Jai Mansfield

Respondent

Ross Scutts

Respondent

Procedural Posture

Civil / Application to Set Aside Default Judgment

Legal Issues

  1. 1 Whether the default judgment against the sixth respondent (Jai Mansfield) should be set aside pursuant to r. 39.05 of the Federal Court Rules 2011 (Cth.) following dismissal of proceedings against other respondents
  2. 2 Whether the representations allegedly made by the sixth respondent constituted misleading and deceptive conduct

Ratio Decidendi

Default judgment was entered against the sixth respondent based on a misapprehension of facts, specifically regarding his alleged misleading representations and the facts underlying the applicants' claim. Findings in subsequent trial undermined the integrity of the default judgment. Accordingly, the judgment should be set aside to avoid injustice.

Court Disposition

Default judgment against the sixth respondent set aside; proceeding against him dismissed with no order as to costs.

Orders

  • Orders 1 and 2 made by the Court in this proceeding on 19 March 2019 be set aside.
  • Applicants' proceeding against the sixth respondent is dismissed with no order as to costs.