Rusca Bros Services Pty Ltd v Dlaw Pty Ltd, in the matter of Rusca Bros Services Pty Ltd (No 2) [2019] FCA 1865

FEDERAL COURT OF AUSTRALIA

Rusca Bros Services Pty Ltd v Dlaw Pty Ltd, in the matter of Rusca Bros Services Pty Ltd (No 2) [2019] FCA 1865 File number: NSD 886 of 2018

Judge: MARKOVIC J

Date of judgment: 14 November 2019

Catchwords: CORPORATIONS – application to set aside a statutory demand (Demand) pursuant to s 459G of the Corporations Act 2001 (Cth) – where Demand issued prior to filing of costs assessment application – whether plaintiff a commercial client and precluded from costs assessment – whether costs assessment completed and debt claimed in the Demand not presently due and payable – whether an estimate of legal costs had been issued pursuant to s 174 of the Legal Profession Uniform Law (NSW) (LPUL) – whether proceedings could be commenced or maintained pursuant to s 178 of the LPUL – whether there is a genuine dispute about the existence or nature of the debt the subject of the Demand – whether off-setting claim arises – whether Demand issued for an improper purpose – application allowed PRACTICE AND PROCEDURE – application to cross-examine on application to set aside a statutory demand – whether matters went to merits of dispute or existence of a genuine dispute

Legislation: Corporations Act 2001 (Cth) ss 45A(3), 459G, 459H, 459J Legal Profession Uniform Law (NSW) ss 170, 174, 178, 194, 198 Legal Profession Uniform Law Application Act 2014 (NSW) ss 70, 70(5A), 83(1) Legal Profession Uniform Law Application Regulation 2015 (NSW) reg 42

Cases cited: Atanaskovic Hartnell v Birketu Pty Ltd [2019] NSWSC 1006 Grocon Constructors (Qld) Pty Ltd v Dexus Funds Management Ltd as Trustee for the Dexus 480Q Trust (No 2) [2019] FCA 1117 In the matter of Chameleon Mining NL; Chameleon Mining NL v Atanaskovic Hartnell [2009] NSWSC 602 In the matter of Tetbury Pty Ltd [2017] NSWSC 37 Law Society of New South Wales v Foreman (1994) 34 NSWLR 408 Ligon 158 Pty Ltd v Huber (2016) 117 ACSR 495; [2016] NSWCA 330 Macleay Nominees v Belle Property East [2001] NSWSC 743 Mandarin International Developments Pty Ltd v Growthcorp (Australia) Pty Ltd (1998) 143 FLR 408 Meehan v Glazier Holdings Pty Ltd (2005) 53 ACSR 229; [2005] NSWCA 24 MNWA Pty Ltd v Deputy Commissioner of Taxation (No 2) (2015) 109 ACSR 265; [2015] FCA 1128 Re Wollongong Coal Ltd (2015) 110 ACSR 134; [2015] NSWSC 1680 Remuneration Data Base Pty Ltd v Pauline Goodyer Real Estate Pty Ltd [2007] NSWSC 59