Grant Baines Transport Pty Ltd v John Zappia [2009] NSWLC 28

Local Court of New South Wales

CITATION: Grant Baines Transport Pty Ltd v John Zappia [2009] NSWLC 28

JURISDICTION: Civil

PARTIES: Plaintiff: Grant Baines Transport Pty Ltd Defendant: John Zappia

FILE NUMBER: 240 of 2006

PLACE OF HEARING: Newcastle Local Court

DATE OF DECISION: 05/26/2009

MAGISTRATE: Magistrate Truscott

CATCHWORDS: Breach of duty as a Director, Company presumed insolvent or actually insolvent, debts incurred when there were reasonable grounds for suspecting the company was insolvent

LEGISLATION CITED: Corporations Act, 2001 (Cth)

Lewis v Doran [2004] NSWSC 608; (2004) 50 ACSR CASES CITED: Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation [2001] NSWSC 621 Robert Mackay Sutherland & Anor as joint liquidators of Australian Coal Technology & Anor v Hanson Construction Material Pty Ltd &Ors (3 April 2009 NSWSC)

TEXTS CITED:

REPRESENTATION: M Holmes instructed by Perry Legal T Hall of Hall Partners

ORDERS: Judgment entered for the Plaintiff in the sum of $53,504.58, plus filing costs and interest to be calculated on the usual basis.

Reasons for Decision

1. In February 2004 Grant Baines Transport Pty Ltd ("Transport") reached an agreement with Zap Logistics Pty Ltd ("Zaps") to provide transport services collecting and delivering goods. Between 30 December 2004 and 14 March 2005 Transport rendered a number of invoices for such services to Zaps, totalling $53,504.58, which remained unpaid. On 13 July 2005 an administrator was appointed to Zaps and on 7 September 2006 a liquidator was appointed. Zaps later changed its name to Quez Removals Pty Ltd. 2. John Zappia was the director of Zaps at the time the invoices fell due. Transport has brought proceedings pursuant to s558M of the Corporations Act , 2001 (Cth) seeking to recover the outstanding $53,504.58 from the Defendant who at the time was the Director of the company when the invoices fell due and payable ("the relevant period"). It is common ground that the debt was incurred when the service was provided, those dates being 14 days prior to the date each invoice was issued.