Owen as Liquidator of Davey SG Pty Ltd (in liq) v Davey, in the matter of Davey SG Pty Ltd (in liq)

The matter before the court was a claim by Owen, as liquidator of Davey SG Pty Ltd (in liquidation), against Davey. The dispute centred on the liability of Davey for debts incurred by the company during insolvency, under sections 588G and 588M of the Corporations Act 2001 (Cth). The court had to determine whether Davey was liable for these debts and, if so, the amount owed. Additionally, the court had to consider the implications of Davey's failure to appear and provide evidence in his defence.

The primary legal issue was whether Davey could be held liable for the debts incurred by the company during insolvency. The plaintiffs argued that Davey, as a director, had knowledge of the company's insolvency and continued to incur debts, contravening the statutory provisions. The defence was based on the assertion that Davey was unaware of the company's insolvency and that he was not personally liable for the debts. However, the court found that this assertion was contradicted by statements made by Davey and the company records. The court also inferred from Davey's failure to appear and provide evidence that he was not able to give honest evidence in support of his defence.

The court concluded that the plaintiffs had satisfied it of their entitlement to judgment. The court found that Davey was liable for the debts incurred during the insolvency period and ordered judgment in the amount of $931,024, plus pre-judgment interest of $70,718.32. The court further ordered that the plaintiffs were entitled to costs on a party and party basis until 14 October 2020, and on an indemnity basis from 15 October 2020. The order was made based on the plaintiffs' offer of compromise, which was not accepted by Davey, leading to the indemnity costs order.