Metropolitan Fire Systems Pty Ltd v Miller, Raymond Wayne & Ors [1997] FCA 399

CATCHWORDS PROCEDURE - application to amend pleadings after close of evidence CORPORATIONS LAW - director's duty to prevent insolvent trading - creditor's right to sue - time when debt incurred - unsecured debt - retention of title clause - insolvency - reasonable grounds to suspect insolvency - defences - reasonable grounds to expect solvency - reliance on another director - positive duty of directors Corporations Law ss 95A, 588G, 588J, 588M, 588R, 1317DA, 1317EB Corporations Legislation Amendment Act (1994) Schedule 1 Companies Act (1991) s 303 Federal Court Rules Order 13 Rule 2 Companies Code s 556 Sodeman v R [1936] 55 CLR 192 Reifek & Anor v McElroy & Anor [1965] 112 CLR 517 at 521. Queensland Bacon Pty Ltd -v- Rees [1966] 115 CLR 266 Sandell v Porter [1965-6] 115 CLR 666 Londish & Ors -v- Gulf Pacific Pty Limited [1993] 45 FCR 128 117 ALR 361 National Australia Bank -v- Nobile & Anor [1988] 100 ALR 227 3M Australia Pty Ltd v Kemish [1986] 10 ACLR 371 Group Four Industries Pty Ltd v Brosnon & Anor [1991] 9 ACLC 1181 Leigh Mardon Pty Ltd -v- Wawn & Ors [1995] 13 ACLC 1,244; 17 ACSR 741 Morley v Statewide Tobacco Services Limited [1990] 2 ACSR 405 Heide Pty Ltd v Lester & Anor [1990] 3 ACSR 159 Shepherd & Ors -v- Australian & New Zealand Banking Group Limited & Anor (1996) 20 ACSR 81 Dunn v Shapowloff [1978] 2 NSWLR 235 Expo International Pty Ltd (In Liquidation) v Chant [1979] 2 NSWLR 820 Hawkins & Ors -v- Bank of China (1992) 26 NSWLR 562 Standard Chartered Bank of Australia Ltd v Antico & Ors [Nos 1&2] [1995] 38 NSWLR 290; 131 ALR 1; 13 ACLC 1381 Hollis -v- Burton [1892] 3 Ch 226 METROPOLITAN FIRE SYSTEMS PTY LTD -v- RAYMOND WAYNE MILLER, PATRICIA MILLER & LEONARD EWINS No. NG 3178 of 1995 EINFELD J SYDNEY 22 MAY 1997

IN THE FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY ) No. NG 3178 of 1995 GENERAL DIVISION ) Between: METROPOLITAN FIRE SYSTEMS PTY LIMITED Applicant And: RAYMOND WAYNE MILLER, PATRICIA MILLER AND LEONARD EWINS Respondents MINUTE OF ORDERS 1. The Court declares that, in causing Raydar Electrics Pty Limited to incur a debt or debts to the applicant in the sum of $49,549, the respondents as directors of Raydar Electrics Pty Limited have breached the provisions of section 588G of the Corporations Law. 2. The respondents are to pay to the applicant compensation in the amount of $49,549 together with interest thereon in accordance with section 51A of the Federal Court Act from 3 February 1994 until the date of judgment. 3. The respondents will pay the applicant's costs of the proceedings. Note: Settlement and entry of orders are dealt with in Order 36 of the Federal Court Rules. EINFELD J SYDNEY 22 MAY 1997