This week's TGIF considers the decision in
Dudley (Liquidator) v RHG Construction Fitout & Maintenance
Pty Ltd [2019] FCA 1355, which serves as a reminder of the
steps to be taken before commencing a 'mothership'
preference claim proceeding.
The Federal Court has considered for the first time under its
current rules the practice of commencing multiple preference claim
actions in a single proceeding, known as a 'mothership'
proceeding, and in the process seeks to remind practitioners that
this approach cannot be embarked on at the expense of compliance
with the rules of court.
Mothership proceedings
Each court will conduct litigation in accordance with its
particular rules and these vary significantly. Preference claims,
while a creature of federal corporations legislation, are
determined by both state and federal courts. Commencing a single
proceeding against multiple defendants in the preference claim
scenario is governed by the rules of joinder specific to
