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Question: You work as a lawyer in the Sydney CBD. Your firm's name is Smith &  Co Lawyers. Last week, Oliver Thomas, director of a large Australia fashion company, Golce & Habbana

26 Feb 2023,4:27 PM

 

The purpose of this assessment is to prepare a report that examines  the Courts within the Australian legal system and the rights and  remedies available within the civil law jurisdiction.  You are to read the following case scenario and then answer the  questions below.


You work as a lawyer in the Sydney CBD. Your firm's name is Smith &  Co Lawyers. Last week, Oliver Thomas, director of a large Australia fashion company, Golce & Habbana made an appointment to come and see you. During that appointment, Oliver explained to you that his  company had supplied over 50 couture fashion items to a Sydney retail  company, Alexander Couture Pty Ltd (“Alexander”) at wholesale price.  Alexander was to place the couture items for retail sale in their flagship store in Paddington.  The total sum of the products supplied to Alexander was $850,000.  Alexander was invoiced at the time of supply and payment was required  within 7 days being 1 January 2022. Despite requests for payment from  Golce and Habbana, Alexander has still not paid.  Tom is aware that Alexander is a proprietary company with 5 directors.  Upon further investigations, it is revealed that Alexander has been  incorporated since 2017 and has 4 retail stores located around  Australia. There are a number of properties and assets registered in the  name of the company. Of late however, Alexander has suffered  financial loss. One of the directors, Tina Purcell has been using  company funds to support her lavish lifestyle including the recent  purchase of a 2021 Ferrari Motor Vehicle and luxury yacht together  totalling more than $3 million. In addition, there is suspicion that  Alexander may have been unable to pay their bills as and when they  fall due for at least the past 6 months.  

 


Your are to advice Tom and Golce & Habbana as to the following:  
1. Draft a brief solicitor's letter of demand addressed to Alexander The  letter should contain all the necessary information required of a letter  of demand.
2. In the event that the matter proceeds to litigation, advise Golce and  Habbana what Court you would commence proceedings in and why.
3. In the event that Golce and Habbana is successful in obtaining  Judgment against Alexander, advise them on the most effective  enforcement options to recover the funds and why.  
4. Discuss whether you can take any action against any of the directors  of Alexander and on what basis. You should include reference to the  Corporations Act 2001 (Cth).

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