News and Resources > Litigation Funding – a Tool for Creditors?

Litigation Funding – a Tool for Creditors?

If employed strategically by creditors, litigation funding can enable the creditor to seek a priority payment, which may result in a significant recovery.

With the anticipated flood of new insolvencies as a result of the COVID-19 pandemic, being aware of the key factors and best practice has never been more important for creditors and insolvency practitioners alike, especially those creditors seeking to enjoy a priority.

Michael McDonnell, Principal of Results Legal recently published an article in the Australian Restructuring Insolvency and Turnaround Association (ARITA) journal that highlighted the tips and traps for practitioners where litigation funding is used.

These principles are also relevant for credit providers and business advisors. Using these strategies can reset the balance of power in favour of minority creditors even in the face of what seems to be insurmountable disparities in voting power, having regard to the quantum of the debts.

To find out more, click here to view the full article.

Creditors and insolvency practitioners should obtain specialist advice regarding potential funding matters and the underlying claims and causes that are the subject of potential funding.

ALSO READ: Receivership/Administration/Liquidation. What’s the difference and how does it affect creditors?

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If you need legal advice or representation of specialist commercial lawyers concerning a case involving your business, please contact our team at Results Legal on 1300 757 534 or use our contact form to send us a message.

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Results Legal specialises in: Debt Recovery, Insolvency Law, Commercial Disputes, Commercial Contracts, Business Separation & Shareholder Disputes.

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From 9 November 2023, the amended Unfair Contract Terms Regime is in effect.

It is crucial for Australian businesses and their legal teams to be fully aware of the potential risks involved.

The consequences of non-compliance include hefty penalties and increased exposure to legal disputes.

Special Counsel Robert Shepley has created the Corporate Counsel’s Guide to the Unfair Contract Terms Regime to help legal teams ensure that their businesses are protected from the risks of unfair terms, ultimately safeguarding their commercial interests.

Download the Corporate Counsel’s Guide to the Unfair Contract Terms Regime

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Results Legal Trends Report November 2023

The current market is challenging and the effects on businesses from COVID are still playing out.

In a recent video, Managing Director Karl Hill provides valuable insights into the market conditions that our clients are experiencing, sharing not only an overview of trends we are seeing in our areas of specialisation, industry trends and recent regulatory changes, but also touching on some of the key matters we are working on.

Topics covered in this video include:

Banking & Finance
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Changes to the Unfair Contract Terms Regime

Is your Credit Documentation and Terms of Trade Unfair?

This article first appeared in Credit Management Magazine, October 2023. Read full Magazine here.

With the introduction of Unfair Contract Terms Regime on November 9th, it is more important than ever for creditors to ensure that their Credit Documentation and Terms of Trade are compliant with existing laws – as failure to do so can now result in your business being exposed to not only increased legal disputes but also new punitive penalties.

In this article, we’ll discuss what these changes mean for you as a creditor and how best approach updating or reviewing the relevant documentation within your business.

[Webinar] Unfair Contract Term Changes are Imminent [hosted by BICB]

Nicholas Boyce discusses the impact of the Treasury Law Amendments (More competition, Better Prices) Act 2022 (Cth) on businesses.

This session was presented at a seminar titled “Unfair Contract Terms Legislation” organised jointly by Results Legal, Access Intell and BICB on Friday 14th July, 2023.

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Ready to get started?

We are offering a no cost review of your terms of trade or credit documentation.

To take advantage of this offer, upload your documentation via our Unfair Contract Terms form.

We will perform a complimentary review of your terms and conditions of trade and any other standard

[Webinar] The New Unfair Contracts Terms: What it means for your business

Onerous and punishing – the new unfair contract terms regime will affect thousands of businesses standard form of contracts.

Is your business prepared for the changes?

Join us at 12pm on Wednesday, May 24th as we hear Anna Taylor – Principal at Results Legal and Jeff George – Head of Risk and Group Services of NCI discuss the upcoming changes to the unfair contract terms regime which come into force on 9 November 2023.

About the Webinar

The changes to the unfair contract terms regime bring about significant changes which will likely affect all

Set-Off And Peak-Indebtedness Get The Axe In MJ Woodman And Badenoch Logging Judgments

The High Court delivered two judgments on 8 February 2023 to bring about the most significant development to the unfair preference laws and ended many years of uncertainty in relation to the defence of set-off and the application of the running account principle.

For many years, there has been heated debate as to whether:

1. set-off is available as a defence to an unfair preference claim; and
2. the “peak-indebtedness rule” is part of the law in Australia.

The High Court decisions of Metal Manufactures Pty Limited v Morton [2023] HCA 1 (Morton) and Bryant v Badenoch Integrated Logging

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