Rares J
In this case, the applicants sought a default judgment for some of their claims against the fourth respondent, Ms Lacey, under r 5.23 of the Federal Court Rules 2011 (FCR). The orders were sought because of Ms Lacey’s default in the proceeding.
Background
The litigation concerns an attempt to convert Western Downs Group Limited, a company established as a charitable trust, from being the first respondent into being the seventh applicant, and to pursue the proceeding in its name. Western Downs Group Limited was established after an Indigenous Land Use Agreement (ILUA) was made between a number of the applicants and respondents and Arrow Energy Pty Ltd. The Group was established to distribute the benefits that Arrow was obliged to pay under the ILUA. The applicants sought to make a claim in the Group’s name against three of the respondents, including Ms Lacey, for breach of fiduciary duty in paying, or causing to be paid to themselves or their associates, very large amounts of the trust money, that were intended to be for the benefit of the native title claim groups and their members.
A process server had served Ms Lacey a copy of the statement of claim at her home. She said she was aware of the proceeding but refused to sign an acknowledgment of service and said she would not read the documents and would place them in the garbage bin. There was no evidence that the orders were then in fact served.
Submissions
The applicants sought orders based on the allegations in the statement of claim against Ms Lacey regarding breach of fiduciary duties owed to the Group. This was supported by the Attorney-General of Queensland as an intervener.
Decision
Being satisfied that Ms Lacey had been fully aware of the proceeding and had chosen to do nothing, Rares J ruled she was in default pursuant to r 5.22 of the Federal Court Rules. Therefore His Honour entered judgment for Western Downs against Ms Lacey for its claims. He ordered that the sum be paid into Court until the Court ordered otherwise.