Results Legal Trends Report July 2024

​The reverberations of Australia’s updated unfair contract terms regime, implemented on 9 November 2023, continue to be felt across the business community.

Since implementation, businesses and credit professionals have been diligently working to align their practices with the new requirements, facing both challenges and opportunities along the way.

Results Legal principals Anna Taylor and Rob Shepley sat down to share their insights on the current situation and strategies for navigating the impacts of these changes.

In this informative video, Anna and Rob share:

• Real-world experiences with unfair contract term defences since November 9
• Strategies for dealing with meritless claims
  
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The reverberations of Australia’s updated unfair contract terms regime, implemented on 9 November 2023, continue to be felt across the business community.

Since implementation, businesses and credit professionals have been diligently working to align their practices with the new requirements, facing both challenges and opportunities along the way.

This report provides insights from Results Legal principals Anna Taylor and Rob Shepley on the current situation, strategies for navigating the impact and notes some opportunities for risk mitigation and process improvement.

Emerging Trends in Litigation and Disputes

Anna Taylor reports a noticeable increase in defences alleging unfair contract terms. 

However, many

Results Legal is delighted to announce the promotion of 10 outstanding professionals across its legal and administration teams in its latest round of advancements.

The number of promotions this round is a record high for Results Legal, evidencing the firm’s commitment to its “Grow Our Own” development program to cultivate top talent and provide opportunities for professional growth.

Effective July 1st, the following promotions will take effect:

• • Nicholas Baker, Charlotte Evans, Kate Molkentin, and Fiona Trime elevated to Senior Associate
  • Callan Brown, Peter Clark, Charles James, and James Reich promoted to Associate
  • Krystle Carter promoted to Executive
    
    Read more

Recently, we’ve seen an increase in activity in the three following areas impacting SMEs, executives and business owners:

• • disputes between shareholders and family-owned businesses;
  • instances of financial distress; and
  • a continued rise in mortgage enforcement, including in the commercial property space.

In this video, Principal Leona Adams discusses what is causing these trends and shares practical advice on how our firm is helping clients successfully navigate these complex situations.

Understanding the nuance of these circumstances and accessing specialised advice early can significantly benefit businesses and individuals alike, offering a pathway through difficult

The increased use of the Unfair Contract Terms Regime as a defence in legal claims during debt recovery is not a coincidence. It’s a result of economic growth softening, the end of COVID-friendly terms, and changes in penalties.

In this article, we explain why this trend is happening, how to assess the validity of this growing legal defence strategy, and our approach to support credit managers and financial decision-makers in identifying invalid claims.

Contributing Factors to this Trend

Several factors contribute to this uptick in defences, with the state of the economy being the most significant.

Principal Anna Taylor outlined

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

In this video update, Rob Shepley, Principal at Results Legal and head of the Commercial Division, shared insights on the firm’s recent efforts to help clients navigate different facets of business transactions successfully.

He offers insights into key aspects of business mergers, factors for strong shareholder agreements, and outlines our approach to devising trading documentation that streamlines negotiations.

Whether you’re seeking guidance on commercial transactions, drafting essential documents, or refining procurement strategies, our dedicated team is here to assist you every step of the way.

If we can assist in any way, please contact our team on 1300 757 534

In July 2023, the ATO implemented changes concerning the disclosure of tax debts, especially those exceeding $100,000, to credit reporting agencies.

By the end of the 2023-24 fiscal year, the ATO anticipates issuing over 50,000 debt disclosure notices to businesses.

These changes are already impacting businesses and adding additional uncertainty in the market. Results Legal has a specialist division that works with businesses that supply goods and services.

In this video, Anna Taylor, a Principal at Results Legal specialising in commercial litigation, specifically trade credit litigation, sheds light on the recent increase in ATO tax default registrations and its flow

The first quarter of 2024 has continued to be a time of uncertainty in the commercial landscape.

It is important for professionals, advisors, and business leaders to stay informed and ready for legal and commercial changes.

In this video, Managing Director Karl Hill shares high-level insights on current trends in our core practice areas that are affecting our clients.

As we approach the final quarter of the financial year, we hope these insights assist as you shape your strategies for the coming months.

Topics covered in this video include:

• Trends in commercial disputes
• Factors influencing insolvency rates
• Impacts of
  
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