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ARTICLE · 23 NOVEMBER 2021

Plausible or patently feeble? Default clause a penalty, statutory demand set-aside

Holding Redlich
Holding Redlich
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Holding Redlich

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Recent case reminds of low threshold required to establish a genuine dispute for the purposes of s459H Corporations Act.

AustraliaCorporate/Commercial Law
Chris Brodrick
Chris Brodrick
Mitchell Waters
Mitchell Waters
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A recent decision of Associate Justice Gardiner in the Victorian Supreme Court provides a reminder of the low threshold required to set aside a statutory demand on the basis of a genuine dispute under section 459H of the Corporations Act 2001 (Cth) (Act). It also provides guidance on the proper drafting of settlement terms to ensure they include an appropriate acknowledgement of debt.

The key facts and key provisions of the deed of settlement and release

NG Partnership and Piper Alderman (Creditors) provided legal services to Aurora Funds Management Limited (Aurora). A dispute arose as to payment for these legal services, which was resolved by the parties entering into a deed of settlement and release (Deed).

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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