Freelife International Holdings LLC

Freelife International Holdings LLC (the applicant) sought to set aside a statutory demand issued by the respondent, Mr. Iain Thompson. The dispute concerned whether Freelife International Holdings LLC was indebted to Mr. Thompson in the amount claimed in the statutory demand.

The primary legal issue before the court was whether Freelife International Holdings LLC had established a "genuine dispute" regarding the existence of the debt claimed by Mr. Thompson, such that it would be inequitable to proceed with the statutory demand. This required the court to consider the nature and substance of the alleged grounds of dispute.

The court found that the applicant had failed to demonstrate a genuine dispute. The alleged grounds of dispute, relating to alleged breaches of contract and misrepresentations by Mr. Thompson, were found to be unsubstantiated and lacking in sufficient particularity to raise a real question as to the existence of the debt. The court applied the principles established in cases concerning the setting aside of statutory demands, emphasizing that mere assertions of a dispute are insufficient; the dispute must be genuine and have a real prospect of success.

Consequently, the court dismissed the application to set aside the statutory demand.