News and Resources > Navigating Insolvencies and Unfair Preference Claims

Navigating Insolvencies and Unfair Preference Claims

Following a slowdown due to COVID-19, the ATO is now actively pursuing legal action by way of winding up applications and the registration of credit defaults leading to more insolvency appointments, and in turn, a noticeable rise in unfair preference claims by liquidators.

In this video, Principal Nicholas Boyce highlights the importance of acting quickly in insolvency scenarios to protect creditors’ rights and security and shares a case where we assisted a client in recovering goods supplied to an insolvent residential building company and negotiated with the liquidator for resale.

Nick also covers the rise in unfair preference claims by liquidators and advises clients to engage early, respond promptly, and negotiate better outcomes rather than ignoring the claims.

Our deep understanding of the legal landscape and proven negotiation skills ensure that our clients’ interests are protected, and their exposure is minimised.

If we can assist in any way, please contact our team on 1300 757 534 to arrange a no-obligation consultation.

Contact us – We are here to help

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.

More Industry News Resources

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
Shareholder & Partnership Disputes
Insolvency & Restructuring
Trade Credit & Debt Recovery
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

Read more

Litigation Funding – a Tool for Creditors?

Litigation funding is a little used tool that can yield big benefits for unsecured creditors.

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

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