Woodgate v Network Associates International BV [2007] NSWSC 1260

Woodgate v Network Associates International BV [2007] NSWSC 1260

The six payments made by Marketing Results Pty Limited to the defendant, totalling $104,000.00, were transactions with a creditor in respect of unsecured indebtedness. They gave the defendant more than it would have received if the payments were set aside and it proved in the winding up, because there would be no return to unsecured creditors even if the payments were reversed. Marketing Results Pty Limited was presumed insolvent during January and February 2003 because insolvency had been proved in an earlier recovery proceeding, and each payment occurred within six months ending on the relation-back day of 12 May 2003. The payments were therefore voidable unfair preferences and...

Jurisdiction
Australia
Judgment Date
08 November 2007
Procedural Posture
Application by Liquidator Under S.588 FF of the Corporations Act 2001 (cth) to Recover Alleged Unfair Preferences and Insolvent Transactions in Creditors' Voluntary Winding Up / Judgment After Service Outside Australia and No Appearance by the Defendant
Outcome
Order to be made for payment of $104,000.00 by defendant to Marketing Results Pty Ltd, together with interest; plaintiffs also entitled to costs.
Legal Topics
['winding Up' 'unfair Preferences' 'insolvent Transactions' 'voidable Transactions' 'service Outside Australia' 'interest on Judgment']
['corporations' 'insolvency' 'civil Procedure'] ['winding Up' 'unfair Preferences' 'insolvent Transactions' 'voidable Transactions' 'service Outside Australia' 'interest on Judgment']

Case Brief

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Procedural Posture

Application by Liquidator Under S.588 FF of the Corporations Act 2001 (cth) to Recover Alleged Unfair Preferences and Insolvent Transactions in Creditors' Voluntary Winding Up / Judgment After Service Outside Australia and No Appearance by the Defendant

Legal Issues

  1. 1 ['Whether the defendant, a Netherlands corporation, was duly served outside Australia and whether the proceedings were founded on a cause of action arising in New South Wales.' 'Which payments were made by Marketing Results Pty Limited and which were made by Quadtel International Pty Limited.' 'Whether Marketing Results Pty Limited was indebted to the defendant when the relevant payments were made.' 'Whether the payments by Marketing Results Pty Limited were unfair preferences under s.588FA of the Corporations Act 2001 (Cth).' 'Whether the payments were insolvent transactions under s.588FC of the Corporations Act 2001 (Cth), including by operation of the presumption in s.588E.' 'Whether the payments were made within the six month period ending on the relation-back day.' 'Whether the defendant should pay interest in addition to the recovered amount.']

Ratio Decidendi

The six payments made by Marketing Results Pty Limited to the defendant, totalling $104,000.00, were transactions with a creditor in respect of unsecured indebtedness. They gave the defendant more than it would have received if the payments were set aside and it proved in the winding up, because there would be no return to unsecured creditors even if the payments were reversed. Marketing Results Pty Limited was presumed insolvent during January and February 2003 because insolvency had been proved in an earlier recovery proceeding, and each payment occurred within six months ending on the relation-back day of 12 May 2003. The payments were therefore voidable unfair preferences and...

Court Disposition

Order to be made for payment of $104,000.00 by defendant to Marketing Results Pty Ltd, together with interest; plaintiffs also entitled to costs.

Orders

  • ['The defendant is to pay Marketing Results Pty Limited $104,000.00.' 'Interest at Supreme Court rates on $104,000.00 is to be included from 12 May 2004 until judgment.' 'The plaintiffs are entitled to their costs.' 'The plaintiffs are to forward short minutes giving effect to the judgment and a written explanation...