In
Setting Aside Statutory Demands . . . on Conditions, we
reported on a case which highlighted that just because an uncertain
offsetting claim is enough to set aside a statutory demand, it does
not necessarily mean that the debtor company will get entirely off
the hook.
The recent case of
Primestyle Pty Ltd v Fluhler (2017) WASC 296 showcases
another scenario where the debtor company has loosened the
creditor's hook by reason of a subsequent agreement reached
between the parties but was unable to defeat the demand entirely
despite an impending insurance indemnity.
The Facts
By a statutory demand issued to Primestyle Pty Ltd
(Primestyle), Mr Fluhler claimed that he was owed
four separate amounts pursuant to orders made by the State
Administrative Tribunal. The four amounts, $1,400, $8,281.28,
$42,524 and $10,285, totaling $62,490.28, were registered as
judgments debts in the Magistrates Court. Primestyle applied to set
aside the demand pursuant to s 459G of
