Hooper v Lock [2016] FCA 298

Hooper v Lock [2016] FCA 298

The proofs of debt submitted by the Hoopers were, by their terms and subsequent solicitor correspondence, treated as formal proofs for the liquidation. The claimants failed to discharge the evidentiary onus to show, on a balance of probabilities, that the company was truly indebted to them in the amounts claimed or that their claims were supported by sufficient contemporaneous documents. The liquidators were correct in rejecting the proofs; the appeals must be dismissed.

Parties
Plaintiff: Lianne Hooper; Plaintiff: John Hooper; First Defendant: Ian Lock as joint and several liquidator of PM Sulcs & Associates Pty Limited (in liquidation) ACN 002 730 958; Second Defendant: John Sheahan as joint and several liquidator of PM Sulcs & Associates Pty Limited (in liquidation) ACN 002 730 958
Jurisdiction
Australia
Judgment Date
24 March 2016
Procedural Posture
Appeal Under S 1321 of the Corporations Act 2001 (cth) / Federal Court Judgment on Appeal From Rejection of Proofs of Debt by Company Liquidators
Outcome
Appeals dismissed; costs to be paid by plaintiffs.
Legal Topics
Proof of Debt, Rejection of Proof of Debt, Liquidator's Powers, Burden of Proof in Insolvency, Appeal From Liquidator's Decision
Bankruptcy and Insolvency Corporations Law Proof of Debt Rejection of Proof of Debt Liquidator's Powers Burden of Proof in Insolvency Appeal From Liquidator's Decision

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Parties

Lianne Hooper

Plaintiff

John Hooper

Plaintiff

Ian Lock as joint and several liquidator of PM Sulcs & Associates Pty Limited (in liquidation) ACN 002 730 958

First Defendant

John Sheahan as joint and several liquidator of PM Sulcs & Associates Pty Limited (in liquidation) ACN 002 730 958

Second Defendant

Procedural Posture

Appeal Under S 1321 of the Corporations Act 2001 (cth) / Federal Court Judgment on Appeal From Rejection of Proofs of Debt by Company Liquidators

Legal Issues

  1. 1 Whether proofs of debt lodged during administration can be treated as formal proofs in liquidation
  2. 2 Whether liquidators were entitled to reject proofs of debt without requiring further formal submissions
  3. 3 Whether claimants discharged the onus of proving asserted indebtedness

Ratio Decidendi

The proofs of debt submitted by the Hoopers were, by their terms and subsequent solicitor correspondence, treated as formal proofs for the liquidation. The claimants failed to discharge the evidentiary onus to show, on a balance of probabilities, that the company was truly indebted to them in the amounts claimed or that their claims were supported by sufficient contemporaneous documents. The liquidators were correct in rejecting the proofs; the appeals must be dismissed.

Court Disposition

Appeals dismissed; costs to be paid by plaintiffs.

Orders

  • The appeal be dismissed.
  • The plaintiff pay the costs of the defendants, to be assessed if not agreed.