Sheahan v Ren [2017] FCA 1163

FEDERAL COURT OF AUSTRALIA

Sheahan v Ren [2017] FCA 1163 File number: SAD 302 of 2016

Judge: BESANKO J

Date of judgment: 29 September 2017

Catchwords: PRACTICE AND PROCEDURE – Consideration of an application seeking summary judgment pursuant to r 26.01(1)(e) of the Federal Court Rules 2011 (Cth) and s 31A of the Federal Court of Australia Act 1976 (Cth) – where the respondent was a director of each company and each company was insolvent at the time a debt was incurred or became insolvent by incurring the debt – where neither company had any books or records – where the companies had no assets and had not commenced any business activity – where the respondent either was aware, or a reasonable person in his position would be aware that the companies would become insolvent on incurring the debts – where the amount claimed by the applicants reflects the loss or damage within s 588M of the Corporation Act 2001 (Cth). PRACTICE AND PROCEDURE – Consideration of an application seeking default judgment pursuant to r 5.23(2)(b) or (2)(c) of the Rules – where the respondent failed to comply with an order of the Court and did not attend a number of hearings without explanation.

Legislation: Corporations Act 2001 (Cth) ss 286, 588E, 588G, 588M Federal Court of Australia Act 1976 (Cth) s 31A Federal Court Rules 2011 (Cth) rr 5.22, 5.23, 26.01

Cases cited: Spencer v The Commonwealth of Australia (2010) 241 CLR 118

Date of hearing: 29 June 2017

Registry: South Australia

Division: General Division

National Practice Area: Commercial and Corporations