SR Case Update: Successful True Employer Application

The firm ran urgent "true employer" application before Stewart J in the Federal Court of Australia on behalf of the voluntary administrators of a group of transport companies.

The firm successful in obtaining the orders sought in the application, meaning that our clients would be able to pay the outstanding employee entitlements to the employees of the transport group before Christmas. This also meant that the Commonwealth would not be required to be involved in paying the entitlements.

The reasons for judgment are in the link below

Shepard (Administrator), in the matter of Transtar Linehaul Pty Ltd (Administrators Appointed) [2025] FCA 1663

https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2025/2025fca1663

SR Case Update: Successful Removal of Voluntary Administrators

In another successful update from Somerset Ryckmans, the firm acted for the Warringah Bowling Club Ltd in an urgent application in the Federal Court of Australia to terminate a voluntary administration.

We were successful in:

1) Removing the external administrators from office; and

2) Obtaining a personal costs order against the external administrators.

This case illustrates that external administrators should not continue an external administration in circumstances where an incoming lender had agreed to meet all of the company's liabilities, thereby rendering the company solvent.

Marc Ryckmans, Anna Kuznetsova and counsel, Ventry Gray were the fantastic team who achieved this great result for our client.

The two judgments of Stewart J are found in the links below.

Macpherson v Warringah Bowling Club Ltd, in the matter of Warringah Bowling Club Ltd (Administrators Appointed) [2025] FCA 1539

https://lnkd.in/guwma7G4

Macpherson v Warringah Bowling Club Ltd, in the matter of Warringah Bowling Club Ltd (No 2) [2025] FCA 1555

https://lnkd.in/gS33-NfA

SR Case Update: Liquidator's claim against director for voidable transactions

Somerset Ryckmans acted for Adam Shepard who was liquidator of three companies whereby Mr Shepard had sought to recover some $4.1 million from the former sole director and shareholder, comprising some $2.1 million paid by those companies to him and a further $2 million in director’s loans which he owed the companies.

At the final hearing, the firm was successful in obtaining orders against the director that he should be required to repay to the liquidator the sum of each of the voidable transactions, with interest, running from the dates which the director received the payments.

Tom O’Brien was counsel, instructed by Nicholas Fasullo.

Link to the judgment is here:

In the matter of Pulse Interactive Pty Limited (in liquidation) [2019] NSWSC 22

In the matter of Pulse Interactive Pty Limited (in liquidation) [2019] NSWSC 22

SR Case Update: Set Aside Default Judgment of Supreme Court of NSW

Somerset Ryckmans successfully acted for an appellant in the Court of Appeal of NSW. The appellant had sought to set aside judgment of Justice Campbell of the Supreme Court of NSW.

The case involved an application to set aside a default judgment entered against our client on 10 November 2022.

Our client’s proposed defence in the proceedings raised two defences, namely equitable unconscionable conduct and relief under the Contracts Review Act 1980 (NSW). Our client claimed that she was under the control and influence of her husband when she signed the relevant guarantee and did not want to sign it but did so because he told her to do so.

As to the delay in bringing the proceedings, our client’s explanation was that she did not recall receiving any statement of claim but that if she did, the most likely scenario would be that she would have passed the documents on to her husband as he had told her that he would take care of such matters.

Ultimately, the Court of Appeal ruled in our client’s favour whereby the judgment entered against our client on 10 November 2022 was set aside.

A link to the judgment is here.

Wakim v Senworth Capital Pty Ltd [2024] NSWCA 102

Wakim v Senworth Capital Pty Ltd [2024] NSWCA 102

SR Case Update: Liquidator's Claim Struck Out

Somerset Ryckmans acted for a Defendant who sought to have a claim (by a liquidator) struck out pursuant to r 16.21 (1) of the Federal Court Rules 2011 (Cth).

The claims which were advanced by the liquidator were insolvent trading claims against our client under s 588G of the Corporations Act 2001 (Cth) . The Liquidator had sought to rely on a presumption of insolvency pursuant to s 588E(4) of the Corporations Act by reason of a failure to keep records and in the alternative actual insolvency pursuant to s 95A of the Corporations Act.

The firm was successful in having the liquidator’s statement of claim struck out as well as obtaining an order for the liquidator to pay the costs of our client from the commencement of the proceedings to 18 January 2023.

Link to the judgment is here:

Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14

Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14

Links to articles on the case are found here:

Chamberlains

Sparke Helmore

SR Case Update: Successful appeal in Full Court of Federal Court of Australia

Somerset Ryckmans acted for Mrs Karin Elisabeth McMillan in respect of an appeal of the judgment in the court below being: Warner (Trustee), in the matter of McMillan (Bankrupt) v McMillan [2020] FCA 1759 .

The primary judge had found that a transfer of a property to our client, by our client’s husband, was void pursuant to s 121 of the Act on the basis that the purpose in effecting the transfer was either to prevent the property becoming divisible among his creditors or to hinder or delay the process of making that property available for division among his creditors.

Somerset Ryckmans was successful in appealing the decision whereby the Full Court fund that the primary judge erred in finding that the main purpose of Mr McMillan in making the Property Transfer was, in substance, to prevent, hinder or delay the Strathfield property from becoming divisible among his creditors.

The outcome resulting in the appeal being allowed and the respondent to pay our client’s costs of the appeal.

Link to the judgment is here:

McMillan v Warner (Trustee) [2022] FCAFC 20

McMillan v Warner (Trustee) [2022] FCAFC 20

SR Case Update: Successful application for client to be appointed as receivers.

Somerset Ryckmans was instructed by Brian Silva and Geoffrey Granger to make an application to the Federal Court of Australia to be appointed as receivers and managers of the assets and undertakings of a Family Trust.

An contested application arose in circumstances where a beneficiary of the Family Trust sought to be appointed as receiver and manager.

The firm was ultimately in successful in having our clients be appointed as Receivers with the Court deeming that this was an appropriate course in the whole of the circumstances.

Link to the Judgment is here:

Silva, in the matter of Alon Pty Ltd (in liquidation) [2023] FCA 547

Silva, in the matter of Alon Pty Ltd (in liquidation) [2023] FCA 547

SR Case Update - Successful application by liquidator for judicial direction under s 90-15 of the IPS

On instructions from Adam Farnsworth in his capacity as liquidator Nat Logistics Qld Pty Ltd (In Liquidation), Somerset Ryckmans, along with counsel Joanne Shepard, made an application pursuant to section 90-15(1) of the Insolvency Practice Schedule (Schedule 2) to the Corporations Act 2001 (Cth),.

The application involved seeking approval that the liquidator would be justified and is otherwise acting properly and reasonably in:

(a)    treating the sum of $477,303 (the Funds) held in the name of Nat Logistics Qld Pty Ltd (In Liquidation) at the National Australia Bank (NAB), BSB no. ending 057 account no. ending in 988 (the Qld Liquidation Account) as the property of or otherwise beneficially owned by Nat Logistics Australia Pty Ltd ACN 634 590 195 (In Liquidation) (Nat Logistics Australia); and

(b)    transferring the Funds from the Qld Liquidation Account to the account in the name of Nat Logistics Australia at the NAB, BSB no. ending 057 account no. ending in 140.

The Court granted the application which entailed an excellent result for the client.

Link to the judgment here:

Farnsworth (Liquidator), in the matter of Nat Logistics Australia Pty Ltd (In liquidation) [2024] FCA 676

Farnsworth (Liquidator), in the matter of Nat Logistics Australia Pty Ltd (In liquidation) [2024] FCA 676