Litigation is often seen as a slow and expensive process, but in the right circumstances, game-changing outcomes can be achieved in a short space of time. A recent $50 million judgment reached in just ten weeks demonstrates the swift resolutions that can be achieved with the right advice.
Background
The client was ADM Capital Investments, an international lender, whose loan was secured by personal guarantees, amongst other things. When newspaper reports cast doubt on whether the guarantors would repay, their whereabouts, and what they might do with their assets, the client engaged us to move quickly to file proceedings to enforce the guarantees and recover the outstanding debt.
About the case
Shortly following commencement of proceedings, the team pursued a summary judgment application — a procedural mechanism with a notoriously high threshold — requiring clear and compelling evidence that the defendant had no viable defence.
Summary judgment is a court determination made without a full trial, granted only where there is no genuine dispute as to the key facts. The threshold for success is extremely high because it risks denying the defendant the opportunity of a trial in the ordinary way. The court will only enter judgment where:
- the plaintiff proved its own case (in this example, the defendant owed the plaintiff the money); and
- the defendant had no legitimate defence to contest the claim (ie the plaintiff satisfied the court that the defendant could not defend the claim, notwithstanding the defendant’s claims to the contrary).
Summary judgment is different to default judgment, which is a judgment obtained in the absence of the defendant taking steps in the proceeding and filing a defence. Consequently, default judgment has a very low threshold to obtain and a similarly low threshold to set aside if the defendant seeks to overturn the judgment. They are also far more common. In contrast, a summary judgment requires the court to consider whether there is any defence to the claim and shortcut the usual steps to determine the dispute.
In this case, the defendant admitted he signed the relevant loan and security agreement but sought to argue unconscionable conduct defence.
The outcome
The Hamilton Locke litigation team obtained judgment in favour of the client of more than $50 million, plus indemnity costs.
The team had received instructions to commence just five days prior to filing proceedings in the Supreme Court of New South Wales seeking payment pursuant to a guarantee. Within three-months of commencement, judgment was obtained which achieved the client’s objectives in an extremely efficient manner.
This outcome demonstrates how strategic litigation planning, combined with legal expertise and a trusted relationship with the client, can yield outstanding results — both financially and timely.
Hamilton Locke remains committed to delivering high-impact outcomes for its clients through innovative and efficient legal solutions. For more information, please contact Brit Ibanez and Ben Fisher.
