Cusack v De Angelis [2007] QCA 313 [2008] 1 Qd R 344
SUPREME COURT OF QUEENSLAND
CITATION: Cusack v De Angelis [2007] QCA 313
PARTIES: MARJORIE JOYCE CUSACK
(plaintiff/respondent)
v
AGOSTINO DE ANGELIS
(defendant/appellant)
FILE NO/S: Appeal No 3270 of 2007
SC No 9479 of 2006
DIVISION: Court of Appeal
PROCEEDING: General Civil Appeal
ORIGINATING
COURT: Supreme Court at Brisbane
DELIVERED ON: 28 September 2007
DELIVERED AT: Brisbane
HEARING DATE: 13 September 2007
JUDGES: McMurdo P, Muir JA and Lyons J
Separate reasons for judgment of each member of the Court,
each concurring as to the order made
ORDER: Appeal dismissed with costs
CATCHWORDS: PROCEDURE – JUDGMENTS AND ORDERS –
AMENDING, VARYING AND SETTING ASIDE –
ACTIONS TO REVIEW OR SET ASIDE JUDGMENT – IN
GENERAL – where appellant made application before a trial
division judge to set aside a default judgment – where the
trial judge dismissed the application and varied the default
judgment by changing the amounts of principal and interest –
whether judgment was irregularly entered – discussion of
circumstances in which rule 290 of the Uniform Civil
Procedure Rules permits a default judgment to be amended
Uniform Civil Procedure Rules 1999 (Qld), r 5, r 290
Anlaby v Praetorius (1888) 20 QBD 764 (CA), distinguished
Anson v Trump (1998) 1 WLR 1404, compared
Armitage v Parsons [1907] 2 KB 410, cited
Beil v Pacific View (Qld) Pty Ltd; sub nom Beil v Mansell
(No 2) [2006] QSC 199; [2006] 2 Qd R 499, cited
Bolt & Nut Co (Tipton) Ltd v Rowlands, Nicholls & Co Ltd
[1964] 2 QB 10, cited
Building Guarantee & Discount Co Ltd v Dolejsi [1967] VR
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2
764, cited
Deputy Commissioner of Taxation v Abberwood Pty Ltd
(1990) 19 NSWLR 530, distinguished
Faircharm Investments Ltd v Citibank International PLC
[1998] EWCA Civ 171, cited
Frisch v Bowman [1928] St R Qd 242, cited
Hodges v Callaghan (2 CB) (NS) 306, cited
Hughes v Justin [1894] 1 QB 667, distinguished
Kwong, Loong & Co v Kwong Yue Loong [1907] QWN 65,
distinguished
Luka Brewery v Grundmann [1985] 2 Qd R 204, cited
Muir v Jenks [1913] 2 KB 412 (CA), applied
Re Gasbourne Pty Ltd [1984] VR 801, cited
Ringrow v BP (Aust) (2005) 224 CLR 656, cited
The City Mutual Life Assurance Society Ltd v Giannarelli
[1977] VR 463, cited
Thomas v Deputy Commissioner of Taxation [2005] QCA 85,
cited
Vosmaer v Spinks [1964] QWN 36, cited
COUNSEL: DJ Campbell SC, with A Christie, for the appellant
J W Peden for the respondent
SOLICITORS: Aitken Craig Lawyers for the appellant
Flower & Hart for the respondent
[1] McMURDO P: The appellant, Mr De Angelis, guaranteed a $300,000 loan made
to a company owned and controlled by him, Rateki Pty Ltd. The company
defaulted in October 2006. Under the loan agreement the interest rate was 30 per
cent and the default rate 40 per cent. Ms Cusack required Mr De Angelis to make
immediate payment of the $300,000 loan sum together with interest. Mr De
Angelis did not meet Ms Cusack's demand.
[2] On 6 November 2006 she filed a claim and statement of claim in the Supreme Court
of Queensland seeking damages from him based on his liability under the guarantee.
On 12 December 2006 she obtained judgment in default of appearance for
$640,442.15, an amount which included interest at 30 per cent until 9 September
2005 and from 10 September 2005 at the compounding default rate of 40 per cent.
[3] On 8 March 2007 Mr De Angelis brought an application to set aside the judgment
under Uniform Civil Procedure Rules 1999 (Qld) (“UCPR”) r 290. In an affidavit
in support of his application he contended that he had a good defence to the claim in
that he was entitled to rescind the guarantee because it was induced by Ms Cusack's
misrepresentations. He also contended that the 40 per cent default rate of interest
was, unlike the 30 per cent rate of interest on the loan itself, so unconscionable and
disproportionate that it amounted to a penalty: Ringrow Pty Ltd v BP Australia Pty
Ltd. 1 Ms Cusack filed an affidavit in which she denied the allegations of
misrepresentation. The matter was heard by the applications judge on 20 March
2007. Both Mr De Angelis and Ms Cusack were cross-examined.
1 (2005) 224 CLR 656, 669.
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[4] In his reasons for judgment, the judge noted that, as Mr De Angelis's barrister
correctly conceded, Mr De Angelis's cross-examination revealed that the alleged
representations were not made out. In the light of that concession, the judge
unsurprisingly concluded that Mr De Angelis had failed to demonstrate an arguable
defence on the merits warranting the setting aside of the default judgment. The only
other issue between the parties concerned the 10 per cent uplift on the default
interest rate which Mr De Angelis contended was a penalty. The judge noted that it
was unnecessary to deal with this contention because Ms Cusack, through her
barrister, Mr Peden, agreed to amend the judgment sum to reflect the contractual
rate of 30 per cent, rather than relying on the 40 per cent default interest rate.
[5] That concession was made in the following terms by Mr Peden:
"Your Honour, I might be able to short-circuit matters. I’ve been able
to take instructions that my client is prepared to accept an
amendment of the judgment such that interest be calculated at 30 per
cent per annum up to today instead of the 40 per cent uplift from the
date of default. Your Honour has power to do that under rule 290.
HIS HONOUR: There’s nothing more either of you wishes to say, I
take it?
[COUNSEL FOR MR DE ANGELIS]: No, thank you, your
Honour."
[6] There was no suggestion from either party that the amendment of the judgment sum,
which favoured Mr De Angelis and was made with his consent, could not be made
under UCPR r 290. The judge dismissed Mr De Angelis's application subject to
amending the judgment of 12 December 2006 by reducing it from $640,442.15 to
$504,234.91. Mr De Angelis was ordered to pay Ms Cusack's costs of and
incidental to his application.
[7] Mr De Angelis appeals from those orders contending through his counsel, Mr
Campbell SC and Mr Christie, that the primary judge erred in varying the quantum
of the judgment entered on 12 December 2006; that judgment was irregularly
entered and so had to be entirely set aside ex debito justitiae (as of right). In support
of that contention he relies on a number of authorities,2 none of which concerned the
interpretation of the UCPR which came into operation on 1 July 1999.
[8] Significantly, it was not seriously submitted that Mr De Angelis now has any
meritorious defence to Ms Cusack's claim. Nor was it suggested that Mr De
Angelis's barrister at first instance (who is no longer his barrister) did not effectively
consent to the orders made by the primary judge.
[9] UCPR r 5 sets out the philosophy and overriding obligations of parties and the court
under the rules:
"5 Philosophy—overriding obligations of parties and court
(1) The purpose of these rules is to facilitate the just and expeditious
resolution of the real issues in civil proceedings at a minimum of
expense.
(2) Accordingly, these rules are to be applied by the courts with the
objective of avoiding undue delay, expense and technicality and
facilitating the purpose of these rules.
2 Anlaby v Praetorius (1888) 20 QBD 764; Thomas v Deputy Commissioner of Taxation [2005] QCA
85; Appeal No 7536 of 2004, 1 April 2005; Luka Brewery v Grundmann [1985] 2 QdR 204.
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(3) In a proceeding in a court, a party impliedly undertakes to the
court and to the other parties to proceed in an expeditious way.
…"
[10] UCPR r 290 is contained in Ch 9 – ENDING PROCEEDINGS EARLY, DIV 2 –
PROCEEDINGS STARTED BY CLAIM . It provides:
"Setting aside judgment by default and enforcement
290 The court may set aside or amend a judgment by default under
this division, and any enforcement of it, on terms, including terms
about costs and the giving of security, the court considers
appropriate."
[11] In requesting on behalf of Ms Cusack that the judgment sum entered on
12 December 2006 be amended, I am not persuaded Mr Peden was necessarily
conceding the 40 per cent interest rate was a penalty. His request was consistent
with a pragmatic decision to obtain a timely final judgment for a lesser sum by
foregoing an entitlement to interest at the default rate. I am unpersuaded that the
judgment sum obtained in default of appearance on 12 December 2006 was
irregularly entered. In any case, well before the UCPR came into operation courts
have recognised a power to vary the amount of a judgment by default by reducing it
to the proper amount: Muir v Jenks,3 Frisch v Bowman4 and Building Guarantee &
Discount Co Ltd v Dolejsi.5 Here, the amendment of the default judgment against
Mr De Angelis was made with his lawyer's consent. The amendment was a
sensible, just and expeditious resolution of the issues between the parties in the
circumstances. The judge rightly considered the amendment of the judgment sum
was appropriate. The clear and ordinary meaning of the express terms of r 290
allowed the amendment, which was entirely consistent with the philosophy of the
UCPR set out in r 5. The appeal should be dismissed with costs.
MUIR JA: Introduction
[12] The appellant appeals from an order of a judge of the trial division of this Court
dismissing an application to set aside a default judgment. The order amended the
default judgment by changing the amounts of principal and interest stated therein
respectively from $640,442.15 and $30,965.22 to $504,234.91 and $202,931.51.
[13] The appellant argues that the judgment was irregularly entered and should have
been set aside ex debito justitiae. The irregularity alleged was the inclusion in it of
default interest payable under a contractual provision claimed to give rise to a
penalty. The other point argued is that, if the default judgment was regularly
entered, there was no power under r 290 of the Uniform Civil Procedure Rules to
amend it by substantially reducing the judgment sum.
The allegations in the claim and statement of claim
[14] By a claim filed on 6 November 2006 the respondent/plaintiff claimed from the
appellant/defendant moneys allegedly owing pursuant to a guarantee and indemnity.
The accompanying statement of claim contained the following allegations. Rateki
Pty Ltd borrowed $300,000 from the respondent pursuant to a loan facility to assist
it in the acquisition and development of land at Goodna. It was a term of the loan
3 [1913] 2 KB 412, Buckley LJ at 417; Kennedy LJ at 418.
4 [1928] St R Qd 242, 245.
5 [1967] VR 764, 766.
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facility that interest be paid on the loan at the rate of 30 per cent per annum save
that, in the event of default, Rateki was obliged to pay interest at the rate of 40 per
cent per annum. On 8 September 2004 the respondent and the appellant entered into
a deed of guarantee and indemnity under which the appellant agreed to pay on
demand moneys due and owing under the facility. In breach of its obligations Rateki
failed to repay the principal and the interest which had accrued under the facility.
The appellant failed to pay after a demand duly made on 27 October 2006.
Default judgment and the proceedings at first instance
[15] Judgment by default was entered on 12 December 2006 and an application to set it
aside was heard on 20 March 2007. Before the learned primary judge it was argued
initially that the judgment should be set aside because of an alleged defence on the
merits. The defence advanced was that the appellant developer had been induced to
give the guarantee and to cause Rateki, which was controlled by him, to enter into
the loan facility in reliance on misrepresentations by the respondent which she had
no basis for making. The misrepresentations were to the effect that:
(a) The project would take only six months;
(b) People in the respondent’s office would “keep an eye on the
project” and assist with Council approval;
(c) the project would return $1.4 million to $1.6 million.
[16] As was remarked by the primary judge in the course of the hearing, the allegations
of misrepresentations and reliance had an air of improbability about them. The
appellant was cross-examined, briefly, in relation to the representations. The
respondent was also cross-examined. After the conclusion of the evidence, the
primary judge asked the appellant’s counsel if he was pursuing the application. He
responded that he was, stating that he did not have instructions to do anything else
but that he did not have any further submissions he wished to make. He accepted
that, in the light of his client’s evidence in cross-examination, there was no
substance in the case based on the alleged misrepresentations.
[17] The appellant’s counsel also sought to rely on an argument that the provision under
which default interest was charged constituted a penalty. When the matter first
arose, after satisfying himself that the point had been pleaded, the primary judge
queried:
“So to the extent to which the judgment is calculated by reference to
the 40 per cent, you want to contend that the difference between the
30 and the 40 is a penalty”?
[18] The appellant’s counsel responded: “I accept that it goes to quantum.” He accepted
also that the penalty argument was based solely on the wording of the clause in the
finance facility imposing the default interest rate and that, if his argument
succeeded, the consequence would be that the judgment would stand but for a
reduced amount.
[19] Counsel for the respondent, after the making of these concessions, informed the
primary judge that the respondent would accept an amendment of the default
judgment to give effect to the calculation of interest at the non penalty rate. He
submitted that there was power under rule 290 for the amendment to be made. There
was no dissent from that proposition.
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Does rule 290 of the UCPR permit a default judgment to be amended except to
correct “an error arising from a slip or omission”?
[20] Rule 290 is contained in Div 2 of Pt 1 of ch 9 dealing with judgments by default and
provides:
“Setting aside judgment by default and enforcement
The court may set aside or amend a judgment by default under this
division, and any enforcement of it, on terms, including terms about
costs and the giving of security, the court considers appropriate.”
[21] It is contended by counsel for the appellant that when regard is had to the evolution
of the rule it should be construed as sanctioning only amendments which correct
“errors arising from a slip or omission”. On the hearing of the appeal the Court was
not referred to authority which directly supported such an unlikely proposition and
there is good reason why the provision should be regarded as one which empowers
a court to do whatever is necessary to achieve justice between the parties and to
avoid unnecessary delay and expense. Rule 5(1) of the Uniform Civil Procedure
Rules explains that the purpose of the Rules is to “facilitate the just and expeditious
resolution of the real issues in civil proceedings at a minimum of expense”.
Rule 5(2) requires the Rules to be applied “with the objective of avoiding undue
delay, expense and technicality and facilitating the purpose of these rules”. To
construe r 290 as the appellant urges would be to limit the scope of the rule in a
manner not required or supported by its words or by any other rule. Furthermore the
construction would be contrary to the purpose and objectives stated in r 5, and more
importantly, contrary to the plain meaning of the words in the rule.
Does rule 290 of the UCPR permit the amendment of irregularly entered
judgments?
[22] In support of his argument counsel for the appellant relied on three cases. The first
of these is Thomas v Deputy Commissioner of Taxation6 in which it was submitted
that r 283, r 290 and r 371 of the Uniform Civil Procedure Rules did not interfere
with the right of a defendant to have an irregularly entered default judgment set
aside as of right. The court found it unnecessary to deal with the point.
[23] The next decision is Anlaby v Praetorius7 in which Fry LJ, referring to a default
judgment entered prematurely and irregularly, observed:8
“In such a case the right of the defendant to have the judgment set
aside is plain and clear. The Court acts upon an obligation; the order
to set aside the judgment is made ex debito justitiae, and there are
good grounds why that should be so, because the entry of judgment
is a serious matter, leading to the issue of execution, and possibly to
an action of trespass.”
[24] The appellant in Anlaby argued that O 70 r 1 of the Supreme Court Rules (UK) gave
the court a discretion which it ought exercise in favour of the appellant. That rule
provided: 9
6 [2005] QCA 85.
7 (1888) 20 QBD 764.
8 At 768.
9 At 768-769.
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7
“Non-compliance with any of these rules, or with any rule of practice
for the time being in force, shall not render any proceedings void
unless the Court or a judge shall so direct, but such proceedings may
be set aside either wholly or in part as irregular, or amended, or
otherwise dealt with in such manner and upon such terms as the
Court or a judge shall think fit.”
[25] Fry LJ concluded that the rule did not apply as the irregular entry of judgment was
made independently of any of the rules and did not constitute non compliance. He
then observed:
“There is a strong distinction between setting aside a judgment for
irregularity, in which case the Court has no discretion to refuse to set
it aside, and setting it aside where the judgment, though regular, has
been obtained through some slip or error on the part of the defendant,
in which case the Court has a discretion to impose terms as a
condition of granting the defendant relief.”
[26] The other member of the court, Lopes LJ, reached the same conclusions for
generally similar reasons. There was no occasion for the court to consider the power
to amend an irregularly entered judgment and it did not do so. The case says little, if
anything, about the power of a court under a rule such as r 290 to amend a default
judgment.
[27] The remaining case is Luka Brewery v Grundmann,10 a decision of Master Lee QC.
In Luka Brewery, the defendant applied to set aside a default judgment on grounds
of irregularity. It was contended, and the Master held, that the action was irregularly
commenced as the plaintiff, a corporation, impermissibly brought an action in a firm
name “Luka Brewery” used by it. The plaintiff’s response to the application was to
seek leave to amend the writ, all other proceedings and the judgment to substitute
for “Luka Brewery” the name of the plaintiff. Reliance was placed on O 93 rr 17 and
18 of the Rules of the Supreme Court (Qld).
[28] Order 93 r 17(1) provided that any failure to comply with the requirements of the
rules was an irregularity which did not nullify the proceedings or anything done
thereunder or therein. Order 93 r 17(2) conferred power on the court in respect of
matters coming under r 17(1) to “allow such amendments (if any) to be made and to
make such order (if any) dealing with the proceedings generally as the Court thinks
fit”.
[29] Master Lee considered at length English authorities in which the English analogues
of O 93 r 17 had been discussed. In so doing he observed:11 “Obviously O 93 r 17
cannot apply to any type of non-compliance with the rules” and that the provisions
of O 93 r 17(1) did not “apply to make regular an irregular judgment entered in
default of appearance or defence by a defendant”.12 He held that there was no scope
for the application of the “slip rule”, O 32 r 12, as the judgment had been
deliberately entered in its existing form. He observed that,13 “The power to amend a
judgment under the rules is restricted” and remarked that no other rule had been
brought to his attention which allowed the judgment to be corrected. The reasons do
10 [1985] 2 Qd R 204.
11 At 214.
12 At 217.
13 At 219.
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not mention and, seemingly, the Master was not referred to O 15 r 10, which was in
terms similar to r 290.
[30] Contrary to the appellant’s counsel’s submissions, the view that r 290 permits a
default judgment to be varied, whether irregularly entered or not, and whether the
error resulted from accidental slip or omission is in fact supported by authority.
[31] Woolcock J in Frisch v Bowman14 acknowledged the power to vary a judgment
entered for an excessive amount. He did not exercise the power as no application in
that regard had been made by the plaintiff.
[32] In Muir v Jenks15 Buckley LJ, referring to the entering of a judgment in default in a
sum exceeding that due to the plaintiff, said:
“… the defendant is entitled to have that judgment set aside, unless
the party who holds the judgment applies as he may to reduce it to
the proper amount. If application to amend be duly made it may be
right not to set the judgment aside but to reduce it to the proper sum;
but unless the party who holds the judgment elects to have it put
right, then upon the authority of Hughes v Justin it seems to me the
defendant is entitled to say ‘this is a wrong judgment, set it aside.’”
[33] In Building Guarantee & Discount Co Ltd v Dolejsi16 McInerney J, after reviewing
the authorities, accepted the existence of a discretion to amend an irregularly
entered judgment. His Honour referred to Dolejsi in a later decision of his17 when
giving reasons for his conclusion that an irregularly entered default judgment should
be varied. More recently, the English Court of Appeal has held that it may be
inappropriate to set aside an irregularly entered judgment if a subsequent application
for summary judgment is bound to succeed.18 That decision is consistent with the
contemporary approach of applying rules of practice and procedure, whether
statutory or developed under the common law, not rigidly and with undue
technicality, but with regard to considerations of cost, expedition, utility and justice.
[34] But no exhaustive review of authority is necessary in order to demonstrate the
unsustainability of the appellant’s argument. The meaning of r 290 is best
ascertained by a consideration of its words in the context in which they occur.
Neither the words nor anything in the context, for reasons already given, support the
qualification urged on behalf of the appellant.
[35] The primary judge correctly exercised his discretion to vary the default judgment
rather than set it aside. He did what the parties invited him to do. Once the
respondent abandoned any claim to the interest affected by the penalty argument, to
set aside the judgment would have been to restore proceedings in which the
appellant had no defence to the respondent’s claim. Such a course would have been
perverse.
Was the judgment irregularly entered?
14 (1928) St R Qd 242.
15 [1913] 2 KB 412 (CA) at 417.
16 [1967] VR 764.
17 The City Mutual Life Assurance Society Ltd v Giannarelli [1977] VR 463 at 471.
18 Faircharm Investments Ltd v Citibank International Plc [1998] EWCA Civ 171.
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[36] It has been long accepted that a defendant is entitled to have an irregularly entered
judgment set aside as of right,19 subject to the exercise of a power of amendment
and the futility of interfering with the judgment. Such judgments are the product of
the exercise of administrative acts performed without legal authority.20 Irregularity,
as that term is used in relation to default judgments, normally results from a failure
to comply with the rules of court relating to the entering of default judgments.
[37] But the concept of irregularity has been given a more extended meaning. A number
of cases support the proposition that where judgment is entered for too large an
amount, the defendant is entitled to have them set aside ex debito justitiae.21 In
some of these cases such default judgments have been treated as having been
irregularly entered.
[38] In Hughes v Justin22 judgment in default of appearance was entered for the amount
of a liquidated demand endorsed on the writ of summons. After the writ was served,
the dispute between the parties was compromised and the defendant paid the agreed
sum leaving only the costs outstanding. Not surprisingly the judgment was set aside.
Lord Esher MR observed: 23
“The judgment for the debt and costs was wrong, and Anlaby v
Praetorius shews that the defendant has a right ex debito justitiae to
have it set aside.”
[39] The other members of the Court agreed with Lord Esher’s reasons. In the course of
his reasons Lopes LJ referred, with approval, to the statement of Willes J in Hodges
v Callaghan24 in which reference was made to s 27 of the Common Law Procedure
Act 1852 (UK) under which judgment in the event of non appearance of the
defendant could be entered “for any sum not exceeding the sum endorsed on the
writ”. In giving judgment, Willes J said:
“It is absurd to suppose that the statute intended to give an option to
be exercised at the mere caprice of the plaintiff. The plaintiff ought
to represent the Court as pronouncing judgment in his favour only
for the sum which is really due to him.”
[40] In Kwong, Loong & Co v Kwong Yue Loong25 after service of a writ claiming a
liquidated amount of £32 11s, the defendant paid the plaintiffs’ solicitors moneys on
account of the debt and costs. Nevertheless the plaintiffs signed judgment for the
whole amount. On the application of the defendant to have the judgment set aside, it
was submitted on behalf of the plaintiff that the judgment could be amended. Chubb
J set aside the judgment with costs. The brief report contains no reference to the
judge’s reasons.
[41] Waddell CJ in Eq in Deputy Commissioner of Taxation v Abberwood Pty Ltd, 26 held
that a judgment in default of appearance was irregularly entered where, although
19 Vosmaer v Spinks [1964] QWN 36 and Anlaby v Praetorius (1888) 20 QBD 764 (CA).
20 Vosmaer v Spinks [1964] QWN 36 and Anlaby v Praetorius (1888) 20 QBD 764 (CA).
21 Muir v Jenks [1913] 2 KB 412 (CA); Armitage v Parsons [1907] 2 KB 410; Hughes v Justin [1894]
1 QB 667; Frisch v Bowman [1928] St R Qd 242; Bolt & Nut Co (Tipton) Ltd v Rowlands, Nicholls
& Co Ltd [1964] 2 QB 10 and Building Guarantee & Discount Co Ltd v Dolejsi [1967] VR 764.
22 [1894] 1 QB 667.
23 At 669.
24 [1857] 2 CB (NS) 306; 140 ER 434.
25 [1907] QWN 65.
26 (1990) 19 NSWLR 530.
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service was effected on the defendant at its registered office, it was known to the
plaintiff that the statement of claim had not, and could not have, come to the
attention of the defendant. His Honour concluded also that the entering of judgment
in these circumstances constituted an abuse of process. In his reasons his Honour
referred with obvious approval to Re Gasbourne Pty Ltd27 in which Nicholson J,
dealing with a similar factual situation, concluded:28
“In my opinion it is incumbent upon a person who wishes to obtain a
judgment against a company in circumstances such as these to
disclose the real situation concerning the company to the court and to
obtain such directions as the court thinks appropriate as to the proper
mode of service.”
[42] Nicholson J held that the judgments in question were irregularly obtained.
[43] The cases in which default judgments have been held to be irregular are ones in
which there was either some deficiency in the steps prerequisite to the entering of
default judgment or an abuse of process or something akin to it resulting from the
plaintiff’s obtaining a judgment to which the plaintiff knew or ought reasonably
have known he or she was not entitled.29 In this case, before the abandonment of the
claim for interest at the default rate, there was a question as to whether the clause
relied on by the appellant did give rise to a penalty,30 which was not necessarily able
to be answered merely by reference to the subject clause in the loan facility or the
relevant allegations in the statement of claim. Counsel referred to no authority
which supported the contention that default judgment entered in such circumstances
was irregular. It is doubtful that it was, but it is unnecessary to resolve the point in
order to determine this appeal. Nor is it necessary to decide whether the loan facility
gave rise to a penalty. That question was only cursorily addressed in argument.
Conclusion
[44] For the above reasons, I would dismiss the appeal with costs.
[45] LYONS J: I have had the benefit of reading the reasons of Muir JA. I agree with
the reasons set out therein and the order proposed.
27 [1984] VR 801.
28 At 858.
29 Cf Anson v Trump [1998] 1 WLR 1404 at 1409.
30 See Beil v Mansell (No 2) [2006] 2 Qd R 499.
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Official source: https://www.sclqld.org.au/caselaw/QCA/2007/313