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ARTICLE · 07 OCTOBER 2016

Court sets the bar for a genuine dispute and offsetting claim

To have a statutory demand set aside, a genuine dispute or offsetting claim must exist at the hearing of the application.

AustraliaLitigation, Mediation & Arbitration

Summary

In the recent case of Brandon Industries (VIC) Pty Ltd v V Locker Pty Ltd [2016] VSC 373, the respondent successfully opposed an application to set aside a statutory demand on the basis that the alleged dispute and offsetting claim did not presently exist and were therefore not genuine.

Critically, the Court held that in order to have a statutory demand set aside, any dispute or offsetting claim must exist at the date of the hearing of the application and not some later date.

Kemp Strang's Brisbane office acted for the successful respondent.

Key Facts

Brandon and V Locker supplied refrigerated locker systems to the Coles Group (Coles) for Coles Click 'n' Collect, whereby customers of Coles can order groceries online through the Coles website and collect their groceries from refrigerated lockers.V Locker supplied the software and electronic locking system components for the lockers and Brandon supplied the refrigeration components.

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