News

Case Note: LCM Operations Pty Ltd, in the matter of 316 Group Pty Ltd

In LCM Operations Pty Ltd, in the matter of 316 Group Pty Ltd (In Liquidation) [2021] FCA 324, the Federal Court of Australia provided guidance as to when the Harmon undertaking is not applicable. This case clarified the purposes for which a party to proceedings is permitted to use documents produced in another proceeding, and when leave is not required to do so. More specifically, clarification is provided as to when the Harman undertaking is not operative.

To appear or not to appear – the costly exercise of default in insolvency proceedings

The recent decision Owens as Liquidator of Davey SG Pty Ltd (in liq) v Davey involved an application by the liquidator seeking an order for payment of compensation by the sole director in accordance with s 588G and s 588M regarding debts incurred during insolvency. The Court found Mr Davey in default after he did not appear at the hearing nor did he comply with pre-trial programming orders. After considering the liquidator’s submissions, he made a default judgement in favour of the plaintiffs, ordering Mr Davey to pay $931,024 plus interest of $70,718.32. This case involves a relatively straightforward application of the Corporations Act 2001 (Cth) (Act) in the context of a director’s liability for debts incurred during insolvency. However, it serves as a reminder of the importance of following court processes and adequately considering any offers of compromise made by a party.

Update: Federal Industrial Relations Bill Receives Royal Assent

By Chao Ni, Principal,  James Sanders, Senior Associate, Herbert Fischbacher, Principal and Jennifer Sung, Lawyer On 18 March 2021, Parliament passed a stripped down version of the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020) (the Bill). This Bill received Royal Assent on 26 March 2021. This means that changes made to…

Rent Relief for Commercial Tenancies if compliant application lodged: Yarraville Business v Persico (Building and Property) [2021] VCAT 213

In Yarraville Business v Persico (Building and Property) [2021] VCAT 213, the Victorian Civil and Administrative Tribunal (VCAT) held that a tenant in a commercial premises did not need to resubmit an application for rental relief after the Victorian Government amended it’s COVID-19 Omnibus (Emergency Measures) (Commercial Leases and Licences) Regulations 2020, S.R.No 107/2020 (the ‘Regulations’) on 29 September 2020. This case provides guidance on whether applications made under the Regulations prior to amendments are still eligible for rental relief.