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Court confirms the super power of PMSI’s

Purchase Money Security Interests (“PMSI”) really do have a super power, according to a Full South Australian Court decision handed down on Friday. Case name: Samwise Holdings v Allied Distribution Finance [2018] SASCFC 95 The Court granted a PMSI holder a priority over 40 motorcycles above a first-in-time registered general security holder. The facts were:…

Bankruptcy notices and pseudonyms

Can a bankruptcy notice (BN) use pseudonyms? Yes, according to a Federal Court case handed down on Thursday. Imagine, you receive a notice of an application to make you a bankrupt and all the notice says is: – your name is LF DB – the creditors name is Ms S M – you owe $6.55…

Postal evidence rule is changing to 7 days

The postal evidence rule, which presumes when post is served on someone under the Cth Evidence Act, is changing to 7 days! Last night, the Senate past the Civil Law and Justice Legislation Amendment Bill 2018. Buried deep in this non-descript Bill is Schedule 5 – Amendment of the Evidence Act 1995 (Cth). Per s…

HDOCA’s are valid, here’s why

Earlier today I announced on LinkedIn that the High Court had released its reasons for why it confirmed the validity of a Holding DOCA (“HDOCA”), in the Mighty River case. Their Honours were (surprisingly) split 3:2. I say “surprising” because the matter only took 5 minutes in Court. Here is a link to the case.…

A lawyers duty to a liquidated company?

When a lawyer is instructed to set aside a company’s liquidation (under section 482 Corporations Act), who do they owe a duty of care¬†to? The company, the instructing shareholder/director or both? Don’t forget that because the company is in liquidation, it can’t be the client of the lawyer. In a recent Tasmanian Supreme Court decision,…