Federal Court cracks down on legal privilege claims – An operational hazard for the multi-disciplinary firms?
A multi-disciplinary firm has used legal privilege to shield documents from the ATO during an audit of its multinational clients, a judge has found, in a ruling that has put multi-disciplinary firms on notice. In Commissioner of Taxation v PricewaterhouseCoopers [2022] FCA 278 Federal Court Justice Moshinsky ruled that a legitimate relationship between lawyer and […]
ReadmoreFederal Court finds RI Advice failed to adequately manage cybersecurity risks
In the landmark decision of Australian Securities and Investments Commission v RI Advice Group Pty Ltd (RI Advice) [2022] FCA 496, the Federal Court found that Australian Financial Services licensee, RI Advice, breached its license obligations to act efficiently and fairly when it failed to have adequate risk management systems to manage its cybersecurity risks. […]
ReadmoreDisclosure obligations for financial service providers in NSW: One-year on from reforms to the Fair Trading Act 1987 (NSW)
It has been over a year since reforms were introduced under the Fair Trading Act 1987 (NSW) (the Act) requiring suppliers (including of financial services) to take reasonable steps to disclose to their customers prejudicial contract terms and for intermediaries to disclose the arrangement under which they are acting, including referral commissions. The disclosure requirements […]
ReadmoreCorruption and Integrity Update – Coaldrake interim report in the Queensland public sector released
With the CCC Commission of Inquiry and the Parliamentary Inquiry into the Office of the Independent Assessor ongoing, there has been a noticeable absence of public releases by the CCC and OIA of late. Notably, however, Professor Peter Coaldrake AO released his Interim Report of the Review of culture and accountability in the Queensland public […]
ReadmoreWas there a foreseeable risk of harm? Supreme Court of Western Australia finds directors were in breach of their statutory and common law directors’ and officers’ duties
Defendants to a proceeding related to a breach of an Asset Sale Agreement, successfully joined directors to the action by way of a third party notice, seeking damages for liability incurred where those directors had breached their directors obligations to discharge their duties with due care and diligence (Section 180(1) of the Corporations Act 2001 (Cth)). […]
ReadmoreThe importance of being cautiously aware of contractual terms relating to insolvency termination events
In the matter of Carna Group Pty Ltd v The Griffin Coal Mining Company (No 6) [2021] FCA 1214, the Court held that Griffin Coal Mining Company (Griffin) was insolvent, without having to prove so under the section 95A Corporations Act 2001 (Cth) (Corporations Act). This was in accordance with a contractual provision where it […]
ReadmoreFederal Court’s refusal to grant leave to amend pleadings
On 11 February 2022 in Canavan v ICRA Rolleston Pty Ltd (Receivers and Managers Appointed)(in liquidation) [2022] FCA 117 the Federal Court of Australia refused to permit the Plaintiff to amend his points of claim less than two weeks before trial. In considering the legal principles and matters relevant to the exercise of the court’s […]
ReadmoreHow to avoid contaminating an insolvency appointment: when a disclaimer of land may be set aside
In March 2019, Liquidators were appointed to The Australian Sawmilling Company Pty Ltd (TASCO) by way of a creditors’ voluntary winding up. TASCO owned a large lot of contaminated land – there were stockpiles of construction and demolition waste resulting from a former licensee conducting a materials recycling business. Close to a year before this, […]
ReadmoreUnconscionable conduct in asset based lending: Stubbings v Jams 2 Pty Ltd [2022] HCA 6
Recently, the High Court of Australia found unconscionable conduct on the part of a lender on an asset based loan and held that the lender could not rely on the certificates of independent legal and financial advice procured from the borrower to immunise the transaction against unconscionable conduct laws. The loan was made to a […]
ReadmoreNotesco Pty Ltd v Australian Financial Complaints Authority Ltd [2022] NSWC 285
In Notesco Pty Ltd v Australian Financial Complaints Authority Ltd [2022] NSWC 285, the Supreme Court of NSW considered the validity of a Determination made by AFCA requiring Notesco Pty Ltd (Notesco) to pay compensation to an elderly resident of France who lost his life savings trading in CFDs (via a third party broker) on […]
ReadmoreSetting off on the wrong foot: creditors are now unable to rely on statutory set-off to defend an unfair preference claim by a liquidator
In a special question reserved for consideration, the Full Federal Court considered whether statutory set-off under s 553C(1) of the Corporations Act 2001 (Cth) (the Act) was available to defend against a liquidator’s claim to recover an unfair preference under s 588FA of the Act. The unanimous and somewhat emphatic answer to this question delivered […]
ReadmoreLiquidator granted approval to enter into funding agreements and confidentiality orders from the Federal Court
Thorn (liquidator), in the matter of South Townsville Developments Pty Ltd (in liq)[1] (Company) involved an ex parte application by a liquidator seeking approval under section 477(2B) of the Corporations Act 2001 (Cth) (Corporations Act) to enter into agreements to fund existing litigation and a request for the suppression and non-publication of certain details in […]
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