Cribb v Kingsbury (No 2) [2021] FCA 1397

Cribb v Kingsbury (No 2) [2021] FCA 1397

Pilbara Bakeries Pty Ltd was not insolvent until Mr Kingsbury resigned and withdrew financial support in August 2016; Mr Kingsbury relied on information provided by Mr Catlin and took reasonable steps to inform himself; payments to defendants were commercially justified and neither the claims for insolvent trading, breach of duty nor unreasonable director-related transactions were established.

Parties
First Plaintiff: Neil Raymond Cribb, as liquidator of Pilbara Bakeries Pty Ltd (in liquidation) ACN 149 201 230; Second Plaintiff: Pilbara Bakeries Pty Ltd (in liquidation) ACN 149 201 230; First Defendant: James Richard Kingsbury; Second Defendant: Malaga Properties Pty Ltd ACN 072 232 869
Jurisdiction
Australia
Judgment Date
11 November 2021
Procedural Posture
Recovery Proceedings / Final Judgment
Outcome
Plaintiffs' case dismissed; judgment for defendants.
Legal Topics
Insolvent Trading, Directors' Duties, Voidable Transactions, Debt Recovery
Corporations Law Insolvent Trading Directors' Duties Voidable Transactions Debt Recovery

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 7 Authorities cited 26 Party arguments 2 Amounts and remedies 18
Sign in to unlock

Parties

Neil Raymond Cribb, as liquidator of Pilbara Bakeries Pty Ltd (in liquidation) ACN 149 201 230

First Plaintiff

Pilbara Bakeries Pty Ltd (in liquidation) ACN 149 201 230

Second Plaintiff

James Richard Kingsbury

First Defendant

Malaga Properties Pty Ltd ACN 072 232 869

Second Defendant

Procedural Posture

Recovery Proceedings / Final Judgment

Legal Issues

  1. 1 Date and existence of insolvency for Pilbara Bakeries Pty Ltd
  2. 2 Whether Mr Kingsbury breached statutory and fiduciary duties as director
  3. 3 Whether payments were unreasonable director-related transactions

Ratio Decidendi

Pilbara Bakeries Pty Ltd was not insolvent until Mr Kingsbury resigned and withdrew financial support in August 2016; Mr Kingsbury relied on information provided by Mr Catlin and took reasonable steps to inform himself; payments to defendants were commercially justified and neither the claims for insolvent trading, breach of duty nor unreasonable director-related transactions were established.

Court Disposition

Plaintiffs' case dismissed; judgment for defendants.

Orders

  • The amended originating process dated 9 September 2020 be dismissed.
  • Unless within five days the plaintiffs file submissions seeking an order to the contrary, the plaintiffs pay the defendants' costs, to be taxed or assessed if not agreed.