Protecting Creditors - Voiding Transactions using section 37A of the Conveyancing Act 1919 (NSW)

The decision in Ramsay Health Care Australia Pty Ltd v Compton [2017] HCA 28

The decision in Ramsay Health Care Australia Pty Ltd v Compton [2017] HCA 28

In CGU Insurance Limited v Blakeley [2016] HCA 2 previously summarised by William Roberts earlier this year the High Court of Australia found that a potential plaintiff can pursue a claim against an insolvent company’s insurer under that company’s insurance policy.

Introduction

Governments raise taxes to ensure the country can fund essential public services. Taxes are used to build and maintain public infrastructure such as roads and transport services and to provide education, a world class health care system as well as welfare assistance.

Paying taxes is part of our civic duty. Sometimes, however, taxpayers (whether individuals or companies) do not or cannot meet their obligations and it is necessary for steps to be taken by and on behalf of the Australian Taxation Office (ATO) to recover those taxes.

The increasing trend to use Third Party Declaratory Relief Applications against Insurers

Overview

A third party claimant, not a party to a policy of insurance, can seek recourse to the proceeds of that policy, through the application of either the Corporations Act (ss 562 and 601AG), the Bankruptcy Act (s117) or the Insurance Contracts Act (s 51).

In a previous article, we addressed some of the pitfalls of drafting subpoenas and provided some tips and tricks for the drafting of subpoenas (see “The Pitfalls of Subpoenas”). Since that article, the NSW Court of Appeal has addressed the issue again with a timely warning to insurers that improperly drafted subpoenas will be set aside, in whole or in part.