HFW DISPUTES DIGEST 2022 Welcome to our first annual digest, in which we collate our 2022 global HFW LITIGATION and International Arbitration publications in one place. This edition includes updates from the whole Disputes arena across England, AsiaPac, and the Middle East. HFW is one of the world’s largest and most active disputes practices, litigation is in our DNA. We have more than 350 specialist disputes lawyers in offices across the Americas, Europe, the Middle East, and AsiaPac.

This week’s TGIF considers a recent case where a liquidator obtained judicial advice to commence proceedings against a director and related company concerning the unlawful receipt and use of trust money.

Key takeaways

These are unprecedented times for businesses trying to manage the challenging impact of inflation, labour shortages, supply interruptions, elections, fires, floods, wars and a pandemic. It is more important than ever to manage working capital, mitigate risk and monetise assets.

In a decision handed down by Black J on 25 March 2022, the New South Wales Supreme Court provided useful guidance on the order of priority of payments in a winding up where employee debts and secured creditor claims exist: In the matter of Spitfire Corporation Limited (in liquidation) and Aspirio Pty Ltd (in liquidation) [2022] NSWSC 340.

We are pleased to present our first edition of the Annual Return, reporting on landmark cases, legislative reform, and the implications for your practice.

Uncharted waters

In Pearce, in the matter of Bandiera Holdings Pty Ltd (Receiver Appointed) (in liquidation) v Bandiera Holdings Pty Ltd [2022] FCA 876, the Federal Court of Australia considered when a summons for the examination can require the production of any professional indemnity insurance policy against which the company might have a claim, even in circumstances where the examinee asserts that any potential claims against it were weak.

The Probuild and Virgin Australia administrations confirm that virtual meetings in external administrations are now an integral part of insolvency in a post-pandemic world. Although recent changes to the Insolvency Practice Rules (Corporations) 2016 (Cth) (IPR) provide greater flexibility, there are aspects that insolvency practitioners need to consider and Court directions may be necessary.

The liquidators of Intellicomms applied to the Court for relief in relation to a sale agreement entered into between Intellicomms and a related company for the sale of business assets, claiming it was a creditor-defeating disposition and a voidable transaction.

In a decision handed down by Brown J on 20 May 2022 in Michaela Manicaros v Commercial Images (Aust) Pty Ltd [2022] QSC 83, the Queensland Supreme Court provided useful guidance on when a liquidator may recover their legal costs of a remuneration application from a creditor objecting to the application (Objector).

In Re Nicolas Critini Pty Ltd (in Liquidation) [2022] NSWSC 1149, the New South Wales Supreme Court confirmed that a statutory debt for a disputed progress claim does not crystalise under SOPA’s^[1] distinct 'pay now, argue later' process until an adjudication determination is delivered.