Keith Soames Real Estate (Thornleigh) v Grabovsky

The case of Keith Soames Real Estate (Thornleigh) v Grabovsky involved a statutory demand made by Keith Soames Real Estate (Thornleigh) against Grabovsky, seeking a debt for unliquidated damages. The dispute was heard in the Federal Circuit Court of Australia. The respondent, Grabovsky, applied to set aside the statutory demand, arguing that it was invalid due to the absence of a debt or any other amount due and payable.

The central legal issues before the court were whether the statutory demand was valid and, if not, whether it should be set aside. Specifically, the court needed to determine whether the demand for unliquidated damages, which had not yet been suffered and were not based on an articulated cause of action, constituted a debt or other amount due and payable under the Corporations Act. Additionally, the court had to consider whether there were grounds to set aside the statutory demand and whether the applicant was entitled to indemnity costs.

In delivering the judgment, the court found that the statutory demand was not valid as it did not specify a debt or other amount due and payable. The demand for unliquidated damages that had not yet been suffered and lacked a clear cause of action did not meet the statutory requirements. Consequently, the court set aside the statutory demand and ordered that the applicant be awarded indemnity costs. This decision underscores the importance of ensuring that statutory demands comply with the strict requirements of the Corporations Act.