Perpetual Trustee Australia Limited v Romeo (No. 2) [2011] NSWSC 1190

Perpetual Trustee Australia Limited v Romeo (No. 2) [2011] NSWSC 1190

The Court held that in light of the significant indebtedness of the defendants, the interests of justice did not permit setting aside the default judgment on terms more favourable than previously proposed. The appropriate orders were those set out in the earlier judgment, with only a correction to the stipulated interest rate.

Parties
Plaintiff: Perpetual Trustee Australia Limited; Plaintiff: Balmain Fund Administration Limited; Defendant: Giuseppe Romeo; Defendant: Anna Maria Romeo
Jurisdiction
Australia
Judgment Date
11 October 2011
Procedural Posture
Interlocutory Application / Application to Set Aside Default Judgment
Outcome
Orders made as previously proposed, with correction of the interest rate to 7.5% per annum.
Legal Topics
Default Judgment, Setting Aside Judgment, Contracts Review Act 1980, Terms of Setting Aside Judgment
Civil Procedure Default Judgment Setting Aside Judgment Contracts Review Act 1980 Terms of Setting Aside Judgment

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Parties

Perpetual Trustee Australia Limited

Plaintiff

Balmain Fund Administration Limited

Plaintiff

Giuseppe Romeo

Defendant

Anna Maria Romeo

Defendant

Procedural Posture

Interlocutory Application / Application to Set Aside Default Judgment

Legal Issues

  1. 1 Whether default judgment should be set aside on terms more favourable to the defendants than those earlier proposed by the Court
  2. 2 Appropriateness of conditions for setting aside the default judgment given misunderstanding about terms of the defendants' offer

Ratio Decidendi

The Court held that in light of the significant indebtedness of the defendants, the interests of justice did not permit setting aside the default judgment on terms more favourable than previously proposed. The appropriate orders were those set out in the earlier judgment, with only a correction to the stipulated interest rate.

Court Disposition

Orders made as previously proposed, with correction of the interest rate to 7.5% per annum.

Orders

  • Upon payment by the defendants of $1.6 million into court within 28 days and their undertaking to maintain interest payments at 7.5% per annum, the default judgment is set aside.
  • Plaintiffs to undertake to disgorge any payments if the Contracts Review Act 1980 claim succeeds.