Earthworks Today Pty Ltd (In Liquidation) v Butler [2018] FCA 1386

Earthworks Today Pty Ltd (In Liquidation) v Butler [2018] FCA 1386

Judgment to be entered for the plaintiff in the amount of $49,486.11 (being the amount of funds admitted received less an arguable set-off of $66,707.12 for some expenditures), with directions for trial regarding the question of set-off concerning certain expenses; third defendant must account for company moneys received into her personal account, subject to any proven right of set-off.

Parties
Plaintiff: Earthworks Today Pty Ltd (In Liquidation); First Defendant: Matthew James Butler; Third Defendant: Zemma Hope Butler (also known as Zemma Hope Laing and Zemma Hope Cust)
Jurisdiction
Australia
Judgment Date
06 September 2018
Procedural Posture
Corporations Matter, Summary Judgment Application / Application for Summary Judgment Under S 31 a of the Federal Court of Australia Act 1976 (cth)
Outcome
Summary judgment granted in part for the plaintiff; directions for further trial as to set-off.
Legal Topics
Summary Judgment, Companies in Liquidation, Equitable Set Off, Trusts, Moneys Had and Received
Corporations Law Summary Judgment Companies in Liquidation Equitable Set Off Trusts Moneys Had and Received

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Parties

Earthworks Today Pty Ltd (In Liquidation)

Plaintiff

Matthew James Butler

First Defendant

Zemma Hope Butler (also known as Zemma Hope Laing and Zemma Hope Cust)

Third Defendant

Procedural Posture

Corporations Matter, Summary Judgment Application / Application for Summary Judgment Under S 31 a of the Federal Court of Australia Act 1976 (cth)

Legal Issues

  1. 1 Whether the third defendant had 'no reasonable prospect' of success in defending claim for recovery of company funds paid into her personal account
  2. 2 Whether a defence of equitable set-off is arguable regarding expenses paid from those funds

Ratio Decidendi

Judgment to be entered for the plaintiff in the amount of $49,486.11 (being the amount of funds admitted received less an arguable set-off of $66,707.12 for some expenditures), with directions for trial regarding the question of set-off concerning certain expenses; third defendant must account for company moneys received into her personal account, subject to any proven right of set-off.

Court Disposition

Summary judgment granted in part for the plaintiff; directions for further trial as to set-off.

Orders

  • Judgment for the plaintiff in the amount of $49,486.11 against the third defendant.
  • Plaintiff to submit proposed orders within seven days giving effect to the reasons for judgment.