An insolvent trading claim was dismissed by the NSW Supreme Court when a creditor was unable to prove that a company was insolvent at the time it incurred its debts. The decision is a useful reminder of the essential elements of an insolvent trading claim, and where the onus of proof lies.
This update explores the case of WGE Pty Ltd v Morris, 13 April 2022, Williams, J, NSWSC, BC202202848.
Basic facts
The plaintiff, WGE Pty Limited (WGE), was a creditor of Coffey EMS Pty Ltd (in liq) (Company). The defendant, John Morris, was the sole director of the Company at all relevant times. WGE contended that the Company was indebted to it in the amount of $182,102.25 at the time the Company went into administration on 15 November 2018 and…