Stoland Pty Ltd v Thurn, Peter James & Anor [1997] FCA 1587

Stoland Pty Ltd v Thurn, Peter James & Anor [1997] FCA 1587

Stoland Pty Limited succeeded in proving that Cazihaven Homes Pty Ltd was insolvent from 29 February 1992 onwards. As Mr Quick was a director at relevant times and gave no evidence to rebut liability, there were reasonable grounds to expect the company would not be able to pay its debts as they became due both before and after 23 June 1993. Stoland properly commenced proceedings under s 588M with the liquidator's written consent following the amendment. Judgment was granted for the applicant.

Parties
Applicant: Stoland Pty Limited; First Respondent: Peter James Thurn; Second Respondent: William Gary Quick
Jurisdiction
Australia
Judgment Date
18 December 1997
Procedural Posture
Civil / Final Judgment
Outcome
Judgment entered for applicant against second respondent
Legal Topics
Insolvent Trading, Director Duties, Corporate Insolvency, Procedure Under Corporations Law
Corporations Law Insolvent Trading Director Duties Corporate Insolvency Procedure Under Corporations Law

Case Brief

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Parties

Stoland Pty Limited

Applicant

Peter James Thurn

First Respondent

William Gary Quick

Second Respondent

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether, immediately before particular debts were incurred, there were reasonable grounds to expect that the company would not be able to pay all its debts as and when they become due
  2. 2 Whether proceedings under ss 588M and 588R were begun when the amended application and statement of claim were filed, or when the original initiating process was filed

Ratio Decidendi

Stoland Pty Limited succeeded in proving that Cazihaven Homes Pty Ltd was insolvent from 29 February 1992 onwards. As Mr Quick was a director at relevant times and gave no evidence to rebut liability, there were reasonable grounds to expect the company would not be able to pay its debts as they became due both before and after 23 June 1993. Stoland properly commenced proceedings under s 588M with the liquidator's written consent following the amendment. Judgment was granted for the applicant.

Court Disposition

Judgment entered for applicant against second respondent

Orders

  • Judgment be entered for the applicant against the second respondent for $241,249.73 plus interest from 1 September 1993 to date of judgment at the rate(s) in Schedule J to Supreme Court Rules (NSW).
  • Second respondent to pay applicant's costs of the proceeding other than aspects previously ordered.