In the matter of Shire Lind Developments (NSW) Pty Ltd (in liq) [2024] NSWSC 1454

In the matter of Shire Lind Developments (NSW) Pty Ltd (in liq) [2024] NSWSC 1454

The company was definitively insolvent by 13 June 2018. Mr Gribble (director) and Quantum Management (holding company) are jointly and severally liable for compensation for insolvent trading under ss 588M and 588W of the Corporations Act 2001 (Cth) for $1,532,291.06. Two payments to Quantum Development totalling $82,500 made in September 2018 are voidable as unfair preferences. Director's defences under ss 588H and 1318 are rejected. Orders as to interest and costs are reserved for further short minutes to be brought in by the parties.

Parties
First Plaintiff: Jason Lloyd Porter in his capacity as liquidator of Shire Lind Developments (NSW) Pty Ltd (in liquidation); Second Plaintiff: Shire Lind Developments (NSW) Pty Ltd (in liquidation); First Defendant: Peter Geoffrey Gribble; Second Defendant: Quantum Management Pty Ltd; Third Defendant: Quantum Development Management Pty Ltd
Jurisdiction
Australia
Judgment Date
19 November 2024
Procedural Posture
Corporations Winding Up/equity Corporations List / Judgment After Final Hearing
Outcome
Claims for insolvent trading against Mr Gribble and Quantum Management are established; preference claims against Quantum Development (in part) are established; orders for compensation, interest, and costs to be finalised by short minutes.
Legal Topics
Insolvent Trading, Director's Duties, Holding Company Liability, Unfair Preference, Voidable Transactions
Corporations Law Insolvency Equity Insolvent Trading Director's Duties Holding Company Liability Unfair Preference Voidable Transactions

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Parties

Jason Lloyd Porter in his capacity as liquidator of Shire Lind Developments (NSW) Pty Ltd (in liquidation)

First Plaintiff

Shire Lind Developments (NSW) Pty Ltd (in liquidation)

Second Plaintiff

Peter Geoffrey Gribble

First Defendant

Quantum Management Pty Ltd

Second Defendant

Quantum Development Management Pty Ltd

Third Defendant

Procedural Posture

Corporations Winding Up/equity Corporations List / Judgment After Final Hearing

Legal Issues

  1. 1 Whether the company was insolvent at the time specified
  2. 2 Whether debts to creditors were incurred while insolvent
  3. 3 Whether defendants are liable for insolvent trading under ss 588G, 588M, and 588V of the Corporations Act 2001 (Cth)

Ratio Decidendi

The company was definitively insolvent by 13 June 2018. Mr Gribble (director) and Quantum Management (holding company) are jointly and severally liable for compensation for insolvent trading under ss 588M and 588W of the Corporations Act 2001 (Cth) for $1,532,291.06. Two payments to Quantum Development totalling $82,500 made in September 2018 are voidable as unfair preferences. Director's defences under ss 588H and 1318 are rejected. Orders as to interest and costs are reserved for further short minutes to be brought in by the parties.

Court Disposition

Claims for insolvent trading against Mr Gribble and Quantum Management are established; preference claims against Quantum Development (in part) are established; orders for compensation, interest, and costs to be finalised by short minutes.

Orders

  • Parties to bring in short minutes of order by 5pm on 3 December 2024 to give effect to reasons for judgment, including orders dealing with interest and costs, to the extent agreed.
  • If orders not agreed, parties to exchange proposed orders and submissions (max 5 pages) by 3 December 2024, indicating whether oral hearing is requested.