Turner, In the matter of L.A. Technologies Pty Ltd (ACN 092 001 495) (In Liquidation) [2009] FCA 805

Turner, In the matter of L.A. Technologies Pty Ltd (ACN 092 001 495) (In Liquidation) [2009] FCA 805

The Defendant was in default because he had not filed an appearance, defence, or evidence and had taken no step in the proceeding. The statement of claim pleaded cognisable claims and the affidavit material supported relief under s 588FF for $33,000 paid to the Defendant during the relation back period and under s 588M(2) for debts incurred while the Defendant was a director when there were reasonable grounds for suspecting insolvency. The alleged employee debt was excluded because the liquidator did not seek an order for it. Judgment was therefore entered for the modified sums, with interest, payment within 45 days of service of sealed orders, and costs.

Jurisdiction
Australia
Judgment Date
21 July 2009
Procedural Posture
Corporations Proceeding by Liquidator Seeking Orders Under the Corporations Act 2001 (cth) / Application for Judgment in Default on Interlocutory Process Filed 9 July 2009
Outcome
Default judgment entered for the Plaintiffs in modified terms; the alleged employee debt was excluded from the s 588M(2) order.
Legal Topics
['judgment in Default' 'liquidator Recovery Proceedings' 'payments During Relation Back Period' 'director Liability for Insolvent Trading' 'interest and Costs']
['corporations Law' 'insolvency' 'civil Procedure'] ['judgment in Default' 'liquidator Recovery Proceedings' 'payments During Relation Back Period' 'director Liability for Insolvent Trading' 'interest and Costs']

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

Corporations Proceeding by Liquidator Seeking Orders Under the Corporations Act 2001 (cth) / Application for Judgment in Default on Interlocutory Process Filed 9 July 2009

Legal Issues

  1. 1 ['Whether the Defendant was in default for the purposes of O 35A of the Federal Court Rules 1979 (Cth).' 'Whether the Plaintiffs appeared entitled on the statement of claim to relief under s 588FF of the Corporations Act 2001 (Cth) for payments totalling $33,000 made by the Company to the Defendant during the relation back period.' 'Whether the Plaintiffs appeared entitled to relief under s 588M(2) of the Corporations Act 2001 (Cth) in respect of debts incurred while the Defendant was a director and while there were reasonable grounds for suspecting insolvency.' 'Whether the alleged employee debt claimed by Po Siang Vong should be included in relief under s 588M(2).' 'Whether payment should be ordered forthwith or within 45 days of service of sealed orders.']

Ratio Decidendi

The Defendant was in default because he had not filed an appearance, defence, or evidence and had taken no step in the proceeding. The statement of claim pleaded cognisable claims and the affidavit material supported relief under s 588FF for $33,000 paid to the Defendant during the relation back period and under s 588M(2) for debts incurred while the Defendant was a director when there were reasonable grounds for suspecting insolvency. The alleged employee debt was excluded because the liquidator did not seek an order for it. Judgment was therefore entered for the modified sums, with interest, payment within 45 days of service of sealed orders, and costs.

Court Disposition

Default judgment entered for the Plaintiffs in modified terms; the alleged employee debt was excluded from the s 588M(2) order.

Orders

  • ['Plaintiffs have leave to file an affidavit of service of Stephen Freer sworn 17 July 2009.' 'Pursuant to s 588FF of the Corporations Act 2001 (Cth), the Defendant is directed to pay to L.A. Technologies Pty Ltd (ACN 092 001 495) (in liquidation) the sum of $33,000, together with interest in the sum of $3,651.69,...