Issue 7: December 2004

Welcome to issue No.7 of Reflections,another exciting year is near completion.

In the past six months we have received instructions on some significant matters and secured some exciting new clients.

• Acting for a financial institution in reviewing their securities for major pharmacies.

• We have been involved in the establishment of a new retail outlet - Anaconda. Anaconda is different from old-fashioned camping stores – something big, fresh and exciting. Not another barn packed with stuff, but an adventure in itself – more of an experience than a store, really. Anaconda is for all outdoor types, from hardcore adrenalin junkies to families on holiday and the whole spectrum of people in-between. For your adventure needs, go to www.anaconda.com.au. We advised on the structure and the protection of intellectual property rights, and reviewed advertising materials and promotional activities.

• Acting for the principal shareholder of a company involved in an alleged impropriety by the Managing Director.

• Congratulations to our Insurance team who have been successfully appointed to the panel of Suncorp-Metway.

• We secured a significant property development client involved in several large residential developments in and around Melbourne.

In sports news, we had a successful outing to the Billiards Room of the RACV Club where our team defeated a gallant Bentleys MRI. There are plans for a re-match in the new year. The Whackers (our mixed netball team) endured another long, hard season and were unlucky not to finish in the top four of their division – which this season was a higher grade than in previous years. At the recent Law Institute of Victoria Fun Run, our team of runners and walkers finished in the top five of their respective age groups and divisions.

The last six months have been an exciting period for us with a number of new faces joining the firm. Our industry practice groups - in particular pharmacy, banking and finance, and transport - have continued to consolidate their position in their respective markets and recent significant instructions should see the firm off to a successful start in 2005.

We wish everyone a very Merry Christmas and a safe new year.

Michelle McLean, CEO

CS Update

Welcome Back
Welcome back to Fiona Thomas, who rejoined the firm in July as Assistant Office Manager, working with our CEO and Operations Manager.

Leneen Forde (Consultant) will be returning to us in February after having her second child, a boy, Frances Edward (Ned) Hargraves.

Articled Clerks
Whilst our 2004 Articled Clerks are nearing the completion of their year, we look forward to greeting three new Articled Clerks who will join us in 2005. They are Adria Jerrard and Katherine De Bont and, in September 2005, Dahlia Fried. All three will spend 12 months rotating through our various practice areas and will be admitted as lawyers in early 2006. We would also like to welcome Jane Lawler who commenced her articles with us in October.

Seasonal Clerks Chris Skordas, Amelia Sutherland, Edward Wilson, Kaye Lelawani, and Dean Katsovdas have just completed a four-week placement with us during their semester break from university studies. All now have some appreciation of the life of a lawyer. We wish them well in their future studies.

Young Business People Program
Our YBP group has hosted a variety of functions this year. In October, the YBP Education Seminar series was launched with Michael Blake (Cromwell Corporation) and Troy Williams (PM Capital Limited) presenting their views on "Investment Strategies and Wealth Creation". The event was attended by over 60 people who were impressed by the suggestions made by the presenters.

In a more light-hearted event, members of the YBP program recently tested their knowledge at the YBP Trivia Night. The event was held at the Mitre Tavern and was a resounding success characterised by fierce competition.

Pharmacy Conference
In July, Damien Wurzel (Senior Associate), John Hutchings (Chairman of Partners), Paul Cooley (Senior Associate), and Wendy Bracciale (Lawyer) conducted a session at the Community Pharmacy Southern Convention and Exhibition on “Future Pharmacy Owners” aimed at those wanting to become a pharmacy owner, whether alone or in a partnership.

In December, Damien Wurzel (Senior Associate) and Business Transactions Adviser Garry Eather, participated in a selected panel for The Pharmacy Guild, to advise on the ramifications of the new legislation for pharmacists in Victoria.

Significant milestone
Congratulations to John Chamberlin (Partner) who achieved the milestone of having been a partner in a city law firm for 40 years.

Workplace Relations Conference
Cornwall Stodart sponsored the Industrial Relations Society of Australia at its National Conference held in Melbourne in late October. The conference was attended by over 450 delegates, and doubled as the celebration of over 100 years of conciliation and arbitration in Australia.

Oaks Day – Spring Carnival
Our Oaks Day Luncheon was an outstanding success with all that attended enjoying the comforts of the “on the rails” car park. Many were more interested in socialising than venturing onto the sodden race track.

AIPM Golf Day
Damien Wurzel (Senior Associate) and Sam Monkivitch (Lawyer) displayed their golfing prowess at the AIPM Golf Day at Yarra Yarra Golf Club. Cornwall Stodart sponsored a Par 3 hole on the course for the day. Congratulations to Damien and Sam who managed to top the leader-board for the day.

Tax Consolidation Products
We have continued to promote our Tax Sharing Agreement and Tax Funding Agreement products at various conferences throughout the country. These products are continuing to generate interest. For further information on these products, go to www.cornwalls.com.au/tsa.htm

Speaking engagements
Paul Cooley (Senior Associate) has been busy presenting an overview of the Common Rule awards that will affect Victoria from 1 January 2005. Paul has also spoken on the changes to superannuation, employee choice of fund legislation (effective 1 July 2005), workplace surveillance and employee privacy.

Louise Houlihan (Lawyer) and Paul Cooley have conducted a seminar on behalf of a major transport client on the topic of “Chain of Responsibility”. This is a set of new laws being introduced across Australia. The central aspect of these laws is that any party who has a degree of control or influence in a transport operation may be potentially liable for breaches of the law by others. For further information, please contact Louise on +61 3 9608 2273 or l.houlihan@cornwalls.com.au.

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Profiler

 

John Chamberlin - Partner

John has a wide reputation in the business and legal community for expertise in complex property transactions.

He has substantial knowledge of commercial property matters, including land tax and dealings with government agencies.

John has been a regular contributor to government forums on taxes and levies. He is also an expert in probate, will making and general family matters.

As a former managing partner of the firm, John has assisted with the development of Cornwall Stodart over the years and continues to be relied upon for his sensible advice.

Ph: +61 3 9608 2121 Email: j.chamberlin@cornwalls.com.au.


Elizabeth Guerra-Stolfa - Partner

Elizabeth is a partner in our Commercial Litigation team at Cornwall Stodart.

Elizabeth is highly experienced in large scale and complex litigation. She practices principally in the Federal Court of Australia and the Supreme Court of Victoria, advising in contracts, trade practices, professional negligence claims and general commercial matters. Elizabeth has a particular interest in family business, and holds a position on the Victorian Committee of Family Business Australia.

A qualified mediator, Elizabeth also practises extensively in the area of alternative dispute resolution. Elizabeth has a wide range of professional involvements. They include: Lawyers Engaged in Alternative Dispute Resolution (LEADR); Supreme Court Panel of Mediators; LEADR Panel of Mediators; and the Family Business Australia Panel of Mediators.

Ph: +61 3 9608 2144 Email: e.guerra@cornwalls.com.au

 

Marelda Hibberd - Senior Associate

Marelda is a Senior Associate and a member of the firm's Reconstruction and Insolvency team. She is experienced in various aspects of reconstruction and insolvency, and has worked on many high profile liquidations, administrations and receiverships, and bankruptcy examinations.

Marelda has worked on a variety of large and small scale bankruptcy matters and in that context, has conducted public examinations, creditors voidable settlement proceedings and given general advice to Trustees.

Marelda is experienced in conducting voidable preference claims, general contract claims, advising on retention of title issues, dealing with remuneration applications and advising insolvency practitioners generally.

Marelda is a Committee Member of the International Women's Insolvency and Restructuring Confederation (IWIRC) and a member of the Young Lawyers and Litigation sections of the Law Institute of Victoria.

Ph: +61 3 9608 2241 Email: m.hibberd@cornwalls.com.au


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Workplace Relations Developments in 2004 - Louise Houlihan


There were a number of significant legal developments in the area of workplace relations in 2004. The biggest five were:

1 The re-introduction of common rule awards into Victoria – commencing 1 January 2005.

2 The redundancy test case decision in the Australian Industrial Relations Commission that increased severance entitlements and extended redundancy benefits to employees of small business for the first time.

3 The High Court’s Electrolux decision clarifying that industrial agreements (certified agreements and AWAs) can only contain matters pertaining to the employment relationship.

4 The October re-election of the Howard Government and particularly the Senate majority that the Government will enjoy from July next year. The Government has already indicated that a raft of new amendments to workplace relations laws are likely to be pursued in the second half of 2005.

5 The Maxwell review of the Occupational Health and Safety Act, released in March this year. The Victorian Government has introduced a new Occupational Health and Safety Bill into parliament based on the recommendations of the review. Some of the notable amendments include:

• easier prosecution of senior officers of a corporation;

• specific penalties for specific offences; and

• increasing the maximum fines for a breach of the general safety duties from the current $250,000 (for a company) and $25,000 (for an individual) to $920,250 and $184,050 respectively.

For further information, please contact Louise Houlihan on +61 3 9608 2273 or l.houlihan@cornwalls.com.au

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Are You A Defendant To Litigation?
Protect Yourself With A Security For Costs Application

- Elizabeth Guerra-Stolfa and Renee Pollak


If you are a Defendant to litigation, you will often need to invest significant funds in legal costs to defend the matter, without knowledge as to whether, if successful at trial, your investment will ever be returned.

When Plaintiffs institute proceedings, they assume the risks inherent in litigation, that they may be unable to recover costs from Defendants. Defendants, on the other hand, do not assume the risks of litigation out of choice. Defendants are compulsory parties to litigation, and therefore the court rules require, in certain circumstances, that Plaintiffs provide security for Defendants’ costs. Apart from when a Defendant brings a counterclaim against a Plaintiff, as a general rule, an order for security will not be made against a Defendant.

In exercising its discretion as to whether to order a Plaintiff to provide security for costs, the court carries out a balancing exercise. On one hand, it weighs the injustice to the Plaintiff if prevented from pursuing a proper claim by an order for security. On the other hand, it weighs the injustice to the Defendant if no security is ordered and the Defendant is unable to recover its costs from the Plaintiff when its defence succeeds.

The factors a Court will take into account when exercising its discretion to grant security or not, include:

1. a Plaintiff who is impecunious will not for that reason alone be ordered to give security for costs. In a recent case, The Airtourer Co-operative Limited v Millicer Aircraft Industries Pty Limited [2004] FCA 1400, Justice Branson of the Federal Court quoted Justice Moore in Chang v Comcare Australia [1999] FCA 1677 where Justice Moore said that “while impecuniosity is not, by itself, sufficient to warrant an order for security, it is generally a relevant consideration”. In making an order in the Airtourer Co-operative case that the Applicant provide a relatively modest amount of security, his Honour Justice Branson identified other relevant considerations (in addition to the Applicant’s impecuniosity);

2. an Applicant who had a limited pool of funds available to it, which it planned to utilise to meet its own legal costs, but which it did not plan should be available to meet any costs order made in favour of the Respondents;

3. the Plaintiff’s prospects of success;

4. whether the Plaintiff’s proceeding is merely defensive; and

5. whether a security for costs order would stultify the pursuit of a legitimate claim.

It is imperative that an application for security is brought promptly, so that if an order is made, it does not unfairly prejudice a Plaintiff who has incurred a considerable liability for costs in the litigation.

Upon application to the court, the court may order that the Plaintiff give security for costs on or before a specified date or time or stage in the proceeding. In other cases, the court may order that the proceeding be stayed until security is given. Whatever the form of the order, the court rules provide that if the Plaintiff fails to give the security required by the order, the court may dismiss the claim. This makes it a useful tool for Defendants, particularly in circumstances where a Plaintiff lacks the funds to provide security as ordered by the court.

For further information, please contact Elizabeth Guerra-Stolfa on +61 3 9608 2144 or e.guerra@cornwalls.com.au or Renee Pollak on +61 3 9608 2209 or r.pollak@cornwalls.com.au

 


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