In the matter of Go Electrical Pty Ltd [2013] NSWSC 824

In the matter of Go Electrical Pty Ltd [2013] NSWSC 824

The statutory demand was set aside because CES established a genuine offsetting claim at least equal to the amount of the demand. The Court was not satisfied that CES had shown a serious question to be tried in relation to the late-expanded claim that about $939,298.91 of goods were not delivered, but the evidence did show a serious question to be tried that GO Electrical was liable for delayed delivery and defective or non-conforming goods, including Famco emergency packs. Cockram's letters, the foreshadowed rectification claim, the $1.637 million quotation, withheld monies, and a possible claim for damage to goodwill made it realistic that CES's offsetting claim could exceed $1.83 million.

Jurisdiction
Australia
Judgment Date
14 June 2013
Procedural Posture
Application to Set Aside a Statutory Demand Under the Corporations Act 2001 (cth) / Principal Judgment After Hearing in the Equity Division Corporations List
Outcome
Statutory demand set aside; defendant to pay plaintiff's costs.
Legal Topics
['statutory Demand' 'genuine Dispute' 'offsetting Claim' 'unliquidated Damages' 'delayed Delivery of Goods' 'defective Goods' 'misleading or Deceptive Conduct']
['corporations Law' 'contract Law' 'sale of Goods' 'australian Consumer Law'] ['statutory Demand' 'genuine Dispute' 'offsetting Claim' 'unliquidated Damages' 'delayed Delivery of Goods' 'defective Goods' 'misleading or Deceptive Conduct']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application to Set Aside a Statutory Demand Under the Corporations Act 2001 (cth) / Principal Judgment After Hearing in the Equity Division Corporations List

Legal Issues

  1. 1 ['Whether there was a genuine dispute about the existence or amount of the debt in the statutory demand.' 'Whether CES had a genuine offsetting claim at least equivalent to the amount of the statutory demand.' 'Whether CES could rely on affidavit material served outside the 21 day period to expand its grounds for setting aside the statutory demand.' "Whether GO Electrical's conduct gave rise to claims for delayed delivery, defective goods, or misleading or deceptive conduct."]

Ratio Decidendi

The statutory demand was set aside because CES established a genuine offsetting claim at least equal to the amount of the demand. The Court was not satisfied that CES had shown a serious question to be tried in relation to the late-expanded claim that about $939,298.91 of goods were not delivered, but the evidence did show a serious question to be tried that GO Electrical was liable for delayed delivery and defective or non-conforming goods, including Famco emergency packs. Cockram's letters, the foreshadowed rectification claim, the $1.637 million quotation, withheld monies, and a possible claim for damage to goodwill made it realistic that CES's offsetting claim could exceed $1.83 million.

Court Disposition

Statutory demand set aside; defendant to pay plaintiff's costs.

Orders

  • ['The Statutory Demand is set aside.' "GO Electrical Pty Ltd is to pay Class Electrical Service Pty Ltd's costs."]