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[1993] NTSC 87
Supreme Court of the NT
1993-10-22
Mildren J
Original judgment source is linked above.
COURT IN THE SUPREME COURT OF THE NORTHERN TERRITORY OF AUSTRALIA MILDREN J CWDS Jurisdiction - General - Ability to hear application to set aside a statutory notice of demand - Application alleged to be out of time - Inadequate compliance with service requirement. Corporations Law,s459G. Jurisdiction - General - Ability to hear application to set aside a statutory notice of demand - 'Substantiated amount' - Relevant factors to show a genuine offsetting claim and genuine dispute - Notice of Demand set aside. Corporations Law, ss459H,J. Service of documents - General - Postage of Notice of Demand - Notice effected when letter delivered in ordinary course of post - Due to inability to attend Post Office, article redirected - Received later - Service not effected until article received
The amount of the debt to which the demand relates, for the purposes of s459H, is the amount of $29,234.83. This is made up of two amounts as follows: (1) $9,114.83 for goods sold and delivered (2) $20,100 for a dealer's support fee. The plaintiff did not dispute that the first sum was due and owing, but claimed it has an offsetting claim in respect of that amount. As to the second sum, the plaintiff claims that that sum is not owing, and that in any event it has an offsetting claim which exceeds the admitted total. 14. The plaintiff claims that the plaintiff and the defendant entered into an agreement on 26 March 1992 whereby the plaintiff was appointed a "key dealer" for the purpose of selling the defendant's products. The plaintiff alleges that not all of the terms of the agreement were reduced to writing, and that part of the agreement consisted of oral terms reached in November and December 1991. Alternatively, the plaintiff contends that the matters then discussed amounted to representations made by the defendant, and that the defendant engaged in deceptive and misleading conduct, contrary to s52 of the Trade Practices Act. In either event the plaintiff claims to have suffered loss and damage for certain of its claims totalling in excess of $60,000, plus unspecified general damages for other of its claims. 15. As to the claim for the dealer's support fee, the plaintiff contends that this sum is not yet due, as the defendant simply did not provide the support for the services for which the fee was paid. 16. In order to establish that the plaintiff has a genuine offsetting claim and genuinely disputes the existence of the alleged debt for the dealer's support fee, the plaintiff alleges that in June 1993, the defendant gave an improper notice terminating the plaintiff's key dealer status, contrary to the express terms of the written agreement. I consider that the plaintiff has an arguable case that this is so. Secondly, the plaintiff alleges that the plaintiff and the defendant settled their respective disputes by an agreement reached on 28 June 1993; that the defendant subsequently resiled from the settlement; that the plaintiff accepted the defendant's repudiation of the settlement; and that the plaintiff thereafter (a) gave written notice that it would resist threatened winding-up proceedings as an abuse of process, and that the dispute should be resolved by ordinary court process (b) gave notice to the defendant of its alleged breaches and some of the losses sustained by the plaintiff. I find that this is established on the evidence before me. Further the plaintiff says that on 15 July 1993, the defendant wrongly purported to terminate the contract between the parties by giving less than the notice required under the terms of the contract. There appears to be substance in this claim as well. I note as well that the plaintiff has now issued a Writ in this Court against the defendant in order to recover its alleged losses. 17. Having regard to the terms of the written agreement between the parties, I consider it likely that not all of the terms between the parties were in fact reduced to writing. The thrust of the plaintiff's complaint concerning the dealer's support fee is that the dealer did not provide the support for which the fee was to be paid. This support allegedly included "services support." Mr Black, on behalf of the defendant, submits that the written contract makes no provision for "services support", but I note that by the written agreement the defendant promised "support in all areas" and that the written agreement envisaged that the plaintiff would maintain adequate facilities to properly service customer's requirements. I consider, in short, that there is a genuine dispute as to the existence of the debt for the sum of $20,100. 18. Further, I consider that the plaintiff has genuine claims against the defendant for sums which I consider total not less than $10,000, and possibly considerably more. In particular, I consider that the following are genuine claims: the claims for advertising funding ($5,280); the loss of profit on a 6020 photocopier (at least $1,700); the claim for the loss of profits due to the wrongful termination of the key dealership and the contract generally which would probably amount to at least $4,000, if not more; and there are in addition, claims relating to preferences for national contracts being given to non-key dealers, which if made out, could result in considerable damages for which the plaintiff presently claims $45,900 in total. I would regard the plaintiff as having established a genuine offsetting claim in at least the sum of $10,000. 19. As the 'substantiated amount' therefore (admitted total $9,114.83, less offsetting total $10,000) is a negative figure, the plaintiff is entitled to an order pursuant to s459H(3) setting aside the demand. 20. Accordingly I order that the demand be set aside. The defendant is to pay the plaintiff's costs of and incidental to this application and order, and I certify fit for counsel.
CFC Corporation Pty Ltd
Lanier
(1984) 35 SASR 408
(1981) 1 NSWLR 400