Working smarter not harder: How liquidators can expedite the process for adjudicating and admitting claims when winding up a company
In a recent case involving a former financial services provider in liquidation, thousands of pending claims from former customers and a letter of comfort with a looming expiry date, the Liquidators appointed to wind up Forex Capital Trading Pty Limited successfully applied to the Federal Court of Australia for orders permitting them to conduct an […]
ReadmoreClass Action against Local Government
In a class action proceeding against a local government for a claim in debt, the plaintiff made an application to strike out parts of the local government’s defence and counter claim that sought to rely on the principles of ‘change of position’, a defence associated with restitution. The application by the plaintiff was dismissed and […]
ReadmoreCultural Heritage – obligations on Qld entities
Images of the world famous Notre Dame cathedral on fire clearly raised many emotional responses for Australians. The images no doubt causing many to lament so much history and culture being destroyed in an instant. Yet few appreciate the parallels between a tragedy in a European cathedral and the regular destruction of indigenous cultural heritage […]
ReadmoreRelease of liability clauses: how far can they go?
It is a well-established legal principle that a release clause in a settlement deed will only be effective to the extent it releases a party from liability in respect of matters that are in the contemplation of the parties at the time it is provided. Notwithstanding this, it is not uncommon to see release clauses […]
ReadmoreLiquidators settling court proceedings: the importance of creditors’ wishes
As is illustrated by the recent Supreme Court of Victoria Court of Appeal decision in McDermott and Potts as liquidators of Lonnex Pty Ltd (in liquidation), creditors’ wishes are important when a liquidator is looking to settle court proceedings. Though liquidators should not act at the dictation of creditors, it is important to bear in […]
ReadmoreThe risks of discontinuing: a look at the High Court’s decision in UBS v Tyne
The recent High Court decision of UBS v Tyne [2018] HCA 45 concerned circumstances where an original trustee of a trust discontinued proceedings in the Supreme Court of New South Wales, then almost 2 years later a subsequently-appointed trustee of the same trust commenced fresh proceedings in the Federal Court raising, in substance, the same claims against […]
ReadmoreBorrowers punished for behaving unconscionably in taking advantage of a lender’s mistake
The New South Wales Supreme Court decision of Citigroup v Wernhard [2019] NSWSC 132 considers whether certain conduct by the borrowers was unconscionable (as against a lender). Borrowers sold one of three properties that was held as security for loans to them, but the lender mistakenly released mortgages over all three. The borrowers noticed the mistake, subsequently sold […]
ReadmoreMere assertion is not enough: The Federal Court provides a reminder of the evidence required to set aside a creditor’s statutory demand for genuine dispute
In Aussie Hoist Property Pty Ltd v Mulqueen [2018] FCA 1493, the Federal Court has given a timely reminder that a company receiving a creditor’s statutory demand (Stat Demand) cannot have that Stat Demand set aside on the basis of genuine dispute as to the existence or amount of the relevant debt merely by asserting […]
ReadmorePleash (Liquidator) v Tucker and the production of documents in public examinations: whether trust assets are ‘Examinable Affairs’
In Pleash (Liquidator) v Tucker,[1] the Federal Court makes clear that the scope of ‘examinable affairs’ in public examinations pursuant to section 597(9) of the Corporations Act 2001 (Cth) (the Act) does not extend to assets that are only potentially available to a prospective defendant. For example, this includes a beneficiary’s interest in the assets […]
ReadmoreWhen a trading trust goes bust: the aftermath of the Killarnee decision
Many modern businesses are carried on through a “trading trust”, with a private company serving as trustee. However, while this type of arrangement is not uncommon, there is still a great deal of uncertainty about correct protocol when a corporate trustee becomes insolvent. Questions arise such as: What happens with the corporate trustee is wound […]
ReadmoreThe first reported foreclosure in Queensland for 35 years – an innovative litigation solution
In June 2018, we assisted one of our government clients to achieve an innovative solution that delivered benefit for both the agency and its defaulting borrower whose security property was in significant negative equity – the first reported foreclosure in Queensland since 1981. The result provided the agency with protection, control and costs savings, and […]
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