LITIGATION

Litigation is the process of taking legal action through the court system to resolve disputes. It involves one party filing a legal claim against another to enforce or defend their rights.

If you’ve received court documents, it’s important to act promptly as strict time limits apply for responses. First, identify the document type (claim, application, or statement of claim) and note the deadline for response. Do not ignore these documents as this may result in a default judgment against you. Early legal advice often leads to better outcomes and more response options.

This will depend on the circumstances, but there is sometimes a way to have the default judgment set aside so that you can defend the claim. You should contact a solicitor as soon as possible as time restrictions may apply, and there is a risk that the other party may take actions to enforce that judgment against you.

You should take this debt seriously and proactively engage with the Australian Taxation Office (ATO) to discuss payment arrangement possibilities. The interest charges and penalties add up very quickly so time is of the essence. Meanwhile, contact your solicitor and the company’s accountant for advice as soon as possible because, in addition to the above, the ATO may issue a creditor’s statutory demand. A statutory demand has strict time restrictions and may allow the ATO to wind up your company if it cannot be complied with or set aside in court.

You may be at risk of personal liability through director penalty notices issued by the ATO which have time restrictions. You may be liable for various things you did or did not do before your company was placed into liquidation if the ATO successfully winds it up and a liquidator is appointed.

Business partnership breakdowns require careful management. Begin by reviewing your company constitution, shareholders’ agreement, or partnership agreement to understand exit mechanisms. Consider whether buying out your partner, selling your share, or winding up the business is preferable. Before making any decisions, seek advice on implications for existing contracts, employees, and tax considerations.

Company directors owe many duties for which they are personally liable, one of which is to avoid trading a company whilst it is insolvent. If you are concerned that your company may be insolvent, you should contact your solicitor for advice as soon as possible to reduce your personal risks and to increase the chances that the company may be salvageable through a scheme or administration of some type.

There are many types of claims that liquidators may be able to make against directors, former directors and other officers of a company in liquidation. All these claims have different elements that the liquidator must prove in order to be successful, and there may be defences available to you. Seek legal advice to review the liquidator’s specific allegations, and your solicitor may be able to negotiate an outcome with the liquidator.

We can assist you in negotiating with the creditor. Although the creditor may choose not to cooperate, many will be willing to enter into a settlement deed on terms agreed upon between the parties in order to resolve the matter. Gather financial information demonstrating your capacity to pay under various scenarios and offer realistic payment terms. Consider offering security or guarantees to increase creditor confidence.

You can expect an initial case assessment, document preparation, information exchange with the other party, settlement discussions, and if necessary, court hearings. We’ll advise you through each step with clear explanations.

The timeline varies widely depending on your case’s complexity and whether it settles early or goes to trial. Some matters are resolved in months, while more complex cases may take a year or longer.

Most cases settle before reaching trial. We explore all settlement options but prepare thoroughly for court if the matter cannot be resolved before a final hearing. Our focus is on achieving your best outcome, whether through negotiation or trial.

Costs include legal fees, court filing fees, and possibly expert witness fees and administrative expenses. We strive to provide a clear cost structure and will discuss stage-by-stage cost estimates based on your specific situation with you.

In some cases, the court may order the losing party to pay the successful party’s legal costs. However, this is not guaranteed and is dependent on the specifics of your case and the applicable laws.

Alternative dispute resolution includes mediation, arbitration, and settlement conferences—methods to resolve disputes outside of the courtroom. These approaches can be a faster, less formal, and often less expensive way to resolve disputes.