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    Insurers on the hook: High Court holds that insurers of insolvent companies can be joined to proceedings commenced by third parties against those companies
    2016-02-22

    CGU Insurance Limited v Blakeley & Ors [2016] HCA 2

    The High Court of Australia has held unanimously1 that a person who commences proceedings against an insolvent company or a bankrupt individual can join that defendant’s insurer to the proceedings and seek a declaration that the insurer is liable to indemnify the defendant.

    Filed under:
    Australia, Insolvency & Restructuring, Insurance, Litigation, The Commercial Bar Association of Victoria, Bankruptcy
    Authors:
    Gabi Crafti
    Location:
    Australia
    Firm:
    The Commercial Bar Association of Victoria
    Liquidators - green light to join insurers
    2016-02-23

    In a decision which potentially increases the assets available to liquidator and bankruptcy trustee plaintiffs, the High Court in CGU Insurance v Blakeley1 has recently determined that plaintiffs may seek to join insurers to proceedings in circumstances where indemnity under the insurance contract is denied and the defendants to the primary claim are bankrupt or being wound up or likely to become so as a result of the claim.

    Filed under:
    Australia, Insolvency & Restructuring, Insurance, Litigation, Hall & Wilcox, Liquidator (law)
    Authors:
    Wayne Kelcey , Mark Petrucco , David Markham
    Location:
    Australia
    Firm:
    Hall & Wilcox
    The “long-arm” of Vizcaya - significance of the Privy Council decision and its impact on Australian common law and the Foreign Judgments Act 1991
    2016-02-24

    Vizcaya Partners Limited v Picard and another [2016] UKPC 5

    Privy Council advice that addresses what is required for foreign judgements

    Filed under:
    Australia, United Kingdom, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Personal jurisdiction, Common law
    Location:
    Australia, United Kingdom
    Firm:
    The Commercial Bar Association of Victoria
    Liquidators record $115k in time, but are allowed only $30k
    2016-02-25

    Two critical components affecting liquidators have come out of Tuesday’s decision by Brereton J in the NSW Supreme Court.

    Filed under:
    Australia, New South Wales, Insolvency & Restructuring, Litigation, McInnes Wilson Lawyers, Corporations Act 2001 (Australia)
    Authors:
    Glenn Caligaris , Chris Hargreaves
    Location:
    Australia
    Firm:
    McInnes Wilson Lawyers
    Cross Border Restructuring and Insolvency Update - January 2016
    2016-01-28

    Simona Kornhaas v Thomas Dithmar (Case C-594/14)

    The ECJ have ruled that a director of an English company that had entered into insolvency proceedings in Germany is liable to reimburse the company under German law for payments made after the company became insolvent.

    Filed under:
    Australia, European Union, Ireland, Luxembourg, United Kingdom, Insolvency & Restructuring, Litigation, Ashfords LLP
    Authors:
    Alan Bennett , Bethany Parr , Olivia Bridger
    Location:
    Australia, European Union, Ireland, Luxembourg, United Kingdom
    Firm:
    Ashfords LLP
    Applying partnership assets to meet the costs of liquidators appointed to the former partners
    2016-01-29

    The facts  

    The Plaintiffs were appointed joint and several liquidators to three separate companies (“Companies”) which were being wound up in insolvency.  

    The three companies had previously traded in partnership (“Partnership”) in an accounting practice.  

    Filed under:
    Australia, Insolvency & Restructuring, Litigation, Jackson McDonald, Liquidator (law)
    Authors:
    Eva Lin , Victoria Butler
    Location:
    Australia
    Firm:
    Jackson McDonald
    Statutory Demand - strict time limits apply
    2016-02-04

    The decision in Adhesive Pro Pty Ltd v Blackrock Supplies Pty Ltd [2015] ACTSC 288 reinforces the strict rule that an application to set aside a statutory demand must be filed and served within 21 days of receiving the demand.

    Statutory demands are a common and useful tool for many unsecured creditors seeking payment of a debt.  Non-compliance with a statutory demand results in a presumption of insolvency and the possibility that a creditor can apply to wind up a company debtor.

    Filed under:
    Australia, Company & Commercial, Insolvency & Restructuring, Litigation, Gadens
    Location:
    Australia
    Firm:
    Gadens
    Deregistered companies and insurance claims: room for improvement?
    2016-02-04

    When a company is deregistered, it ceases to exist.[1] So what happens when a person has a genuine claim against that company but fails to commence proceedings before it is deregistered?

    Filed under:
    Australia, Insolvency & Restructuring, Insurance, Litigation, McInnes Wilson Lawyers
    Authors:
    Alicia Hill , Ingrid Lehmann
    Location:
    Australia
    Firm:
    McInnes Wilson Lawyers
    The High Court decides: Insurers can be joined
    2016-02-12

    The High Court of Australia in CGU Insurance Ltd v Blakeley & Ors [2016] HCA 2 unanimously confirmed that a third party can join a defendant’s insurer to a proceeding and seek a declaration of rights under the insurance agreement, provided that third party has a ‘real interest’ in the performance of the agreement and that there is practical utility in the court providing that declaration.

    Filed under:
    Australia, Insolvency & Restructuring, Insurance, Litigation, King & Wood Mallesons, High Court of Australia
    Authors:
    Tony Troiani , David Cowling
    Location:
    Australia
    Firm:
    King & Wood Mallesons
    24 December 2015 Cross-border insolvency provisions at work
    2015-12-24

    Key Points:

    Complex cross-border issues can be dealt with relatively easily under the Cross-Border Insolvency Act as long as flexibility is built into the relevant orders.

    Filed under:
    Australia, Insolvency & Restructuring, Litigation, Clayton Utz
    Authors:
    Peter Bowden
    Location:
    Australia
    Firm:
    Clayton Utz

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