Advanced Management v Beech

Case [2003] NSWSC 638


CITATION: Advanced Management v Beech [2003] NSWSC 638
HEARING DATE(S): 11/07/03
JUDGMENT DATE:
18 July 2003
JURISDICTION:
Equity Division
JUDGMENT OF: Master Macready at 1
DECISION:
CATCHWORDS: Corporations Law. Application to set aside statutory demand. Whether a referance to Review Panel of a determination of a costs assessor operates as a stay of judgment. On the facts no referral during the currency of the demand. Proceedings dismssed.

PARTIES :

Advanced Management Consultancy Pty Limited v Martin Conway Beech
FILE NUMBER(S): SC 3097 of 2003
COUNSEL: Mr S.J. Stanton for plaintiff
SOLICITORS:

Aitken McLachlan Thorpe for plaintiff
Mr T. Bors of Hasset Dixon for defendant


- 1 -

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
CORPORATIONS LIST

MASTER MACREADY

Friday 18 July 2003

3097 of 2003 ADVANCED MANAGEMENT CONSULTANCY PTY LIMITED v MARTIN CONWAY BEECH

JUDGMENT

1 MASTER: This is an application under the Corporations Act to set aside a statutory demand served by the defendant on the plaintiff which is dated 13 May 2003. The statutory demand sought recovery of $50,272.43 being the amount of a judgment debt obtained in the District Court in respect of an order for costs in litigation between the two parties.

2 The plaintiff in these proceedings was the plaintiff in District Court proceedings No 5856 of 1998 which were heard at first instance in October 2000. The plaintiff was successful before the trial judge and obtained a verdict of $76,011.17. There was an appeal from that decision to the Court of Appeal. The Court of Appeal set aside the judgment and ordered a retrial which is listed for hearing in the District Court on 21 and 22 July 2003. The Court of Appeal ordered the respondent to pay the appellant’s costs of the appeal and to have a certificate under the Suitors Fund Act if otherwise qualified.

3 On 22 October 2002 there was an application by the defendant for an assessment of the party and party costs in that order. A Certificate of Determination and a Statement of Reasons was given by the Costs Assessor on 12 May 2003.

4 The next day, namely 13 May 2003 the defendant lodged the Certificate of Determination in the District Court and as a result there was judgment against the plaintiff in the sum of $50,272.43. The judgment was given pursuant to section 208 J (3) of the Legal Profession Act 1987 which is in the following terms:-

          (3) In the case of an amount of costs that has not been paid, the certificate is, on the filing of the certificate in the office or registry of a court having jurisdiction to order the payment of that amount of money, and with no further action, taken to be a judgment of that court for the amount of unpaid costs, and the rate of any interest payable in respect of that amount of costs is the rate of interest in the court in which the certificate is filed.

5 There is a procedure under…

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Advanced Management v Beech [2003] NSWSC 638
Case
[2003] NSWSC 638
Decision Date

CaseChat Overview and Summary

Advanced Management lodged a statutory demand against Beech under the Corporations Act 2001 (Cth) seeking payment of a debt. Beech applied to set aside the statutory demand, arguing that a referral to a Review Panel of a determination by a costs assessor operated as a stay of judgment. The case was heard in the Federal Court of Australia, where the central issue was whether the reference to the Review Panel constituted a stay of judgment, thereby preventing the statutory demand from being enforced. The Court found that there was no reference to the Review Panel during the currency of the statutory demand, and therefore, the demand was not stayed. The Court dismissed Beech's application to set aside the statutory demand, concluding that there was no valid stay of judgment in place. Consequently, the statutory demand remained enforceable, and Advanced Management could proceed with its claim against Beech for the outstanding debt.

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Background to the litigation

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Ratio Decidendi

Legal Principle Established

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