Hambleton v Finn

[2017] QDC 61

DISTRICT COURT OF QUEENSLAND

CITATION:

Hambleton & Anor v Finn [2017] QDC 61

PARTIES:

DAVID JAMES HAMBLETON AND JAMES MARC IMRAY AS LIQUIDATORS OF MARY FINN’S NURSING RECRUITMENT PTY LTD

(plaintiffs)

v

MARY DELORES FINN

(defendant)

FILE NO/S:

BD 2294/2016

DIVISION:

PROCEEDING:

Civil trial

ORIGINATING COURT:

District Court at Brisbane

DELIVERED ON:

17 March 2017

DELIVERED AT:

Brisbane

HEARING DATE:

25 January 2017

JUDGE:

McGill SC DCJ

ORDER:

Judgment that the defendant pay the plaintiff $166,547.80, including $13,463.55 by way of interest.

CATCHWORDS:

CORPORATIONS LAW – Director’s liability – insolvent trading – whether company insolvent when debts incurred – whether section applies if debt to director – statutory set off – whether director to be excused.

Corporations Act 2001 (Cth) ss 553C, 558G, 558M, 1317S.

re Ashington Bayswater Pty Ltd [2013] NSWSC 1008 – cited.
Buzzle Operations Pty Ltd (in liq) v Apple Computer Australia Pty Ltd (2011) 81 NSWLR 47 – cited.
Chan v First Strategic Development Corporation Ltd [2015] QCA 28 – applied.
Commissioner of Taxation v Croft & Anor [2016] QSC 190 – cited.
Daniels v Anderson (1995) 37 NSWLR 438 - cited.
Duncan v Vinidex Tubemakers Pty Ltd [1999] SASC 157 – cited.
Edenden v Bignell [2007] NSWSC 1122 – cited.
Hall v Poolman (2007) 65 ACSR 123 – considered.
International Cat Manufacturing Pty Ltd v Rodrick [2013] QCA 372 – applied.
Jetaway Logistics Pty Ltd v Deputy Commissioner of Taxation (2009) 26 VR 657 – applied.
Moore v Australian Security and Investment Commission (No 2) (2011) NSWCA 110 – cited.
Morton v Rexel Electrical Supplies Pty Ltd [2015] QDC 49 – followed.
Mulherin v Bank of Western Australia Ltd [2006] QCA 175 – applied.
Re Parker (1997) 150 ALR 92 – cited.
Rexel Electrical Supplies Pty Ltd v Morton [2015] QCA 235 – applied.
Sandell v Porter (1966) 115 CLR 666 – applied.
Smith v Offermans [2015] QCA 55 – cited.
re Swan Services Pty Ltd [2016] NSWSC 1724 – cited.

COUNSEL:

D J Topp for the plaintiffs

The defendant appeared in person

SOLICITORS:

Patane Lawyers Pty Ltd for the plaintiffs

The defendant was not represented

1. At all relevant times the defendant was the sole director of a company, Mary Finn’s Nursing Recruitment Pty Ltd (“the company”). The company was ordered to be wound up on 10 July 2015 by the Federal Court, which appointed the plaintiffs as liquidators: Exhibit 1. By this proceeding, the plaintiffs allege that the defendant is liable to the company for an amount of $368,487.83 as compensation for loss resulting from insolvent trading. The defendant, who has not been legally represented, denied that one of the debts relied on by the plaintiffs was owing by the company, and in her defence sought to set off against the claim an amount owing by the company to her for money she lent to the company, and alleged that in all the circumstances of the case she ought to be excused from any contravention established, under s 1317S of the Corporations Act 2001…