A focus on dollars and sense: The importance of properly quantifying loss

This week's TGIF considers the decision of the Supreme Court In the matter of IW4U Pty Limited (In Liquidation) [2021] NSWSC 40, where the liquidators failed to recover compensation despite establishing contraventions of directors' duties following an apparent phoenix.

Key takeaways

• Claims should focus not only on breach but the quantification of loss suffered and, normally, how that adversely affects the creditors of the company. Without loss, there may not be a proper basis for whatever orders are sought. This is especially important where there may be multiple ways to quantify the impact on creditors.
  
  
• When engaging an expert witness to provide valuation opinion evidence, they should be appraised of all the relevant facts that impact or could impact the value of the company or assets in question at the time of the valuation.