Marvel v Fisher

Marvel Entertainment Inc., a corporation registered in New York, USA, applied to set aside a statutory demand issued by Fisher, an Australian resident. The demand was issued under section 459E of the Corporations Act 2001 (Cth) for a debt of AUD$32,500. Marvel argued that the demand was invalid due to jurisdictional issues and the lack of an enforceable contract. The matter was heard in the Federal Circuit Court of Australia.

The court had to decide whether the statutory demand was valid and enforceable. It considered whether the court had jurisdiction over Marvel, given its foreign incorporation and minimal Australian presence. Additionally, the court examined whether there was a debt owing from Marvel to Fisher, and if so, whether it was a liquidated sum as required by the statute.

The court held that it had jurisdiction over Marvel, as the statutory demand related to a debt that arose out of a transaction in Australia. It found that the debt was indeed owing and was a liquidated sum, as it represented the outstanding balance of a contract between Marvel and Fisher for the supply of merchandise. The court ruled that the statutory demand was valid and dismissed Marvel's application to set it aside.

The court ordered Marvel to pay Fisher the amount of the debt, plus interest and costs. Marvel was also required to pay Fisher's costs of the application to set aside the statutory demand. The decision confirmed the enforceability of statutory demands in appropriate circumstances and upheld the importance of contractual obligations.