We acted for a national trade supplier in a large number of commercial and debt recovery matters. In this particular case there was a debt of over $250,000.00 owed by a company to our client, secured by a director’s guarantee. The debtor company and the director personally, had incurred numerous significant debts and were being pursued by numerous creditors. The challenge was to not only successfully secure a judgment but to also secure recovery of that judgment for our client ahead of the other creditors.
We acted as a supporting creditor in winding up proceedings brought by a creditor in the ACT Supreme Court. We simultaneously commenced proceedings against the company and director in the NSW District Court. When the ACT proceedings were dismissed by the court on a technicality, we shifted the focus to the District Court proceedings. The company and director put on defences that lacked merit. The company has since gone into administration. Thus our action against the company was stayed however, our action against the director was not stayed because we commenced proceedings prior to the administrator being appointed.
We sought that the director’s frivolous defence be struck out and summary judgment given against him, or in the alternative to have the hearing of the proceedings against the director expedited so that a judgment could be enforced before he disburses his personal assets.
We also lodged caveats on the director’s property to protect our client’s caveatable interest in the debtor’s property in the meantime.