The increased use of the Unfair Contract Terms Regime as a defence in legal claims during debt recovery is not a coincidence. It’s a result of economic growth softening, the end of COVID-friendly terms, and changes in penalties.

In this article, we explain why this trend is happening, how to assess the validity of this growing legal defence strategy, and our approach to support credit managers and financial decision-makers in identifying invalid claims.

Contributing Factors to this Trend

Several factors contribute to this uptick in defences, with the state of the economy being the most significant.

Principal Anna Taylor outlined

Following a slowdown due to COVID-19, the ATO is now actively pursuing legal action by way of winding up applications and the registration of credit defaults leading to more insolvency appointments, and in turn, a noticeable rise in unfair preference claims by liquidators.

In this video, Principal Nicholas Boyce highlights the importance of acting quickly in insolvency scenarios to protect creditors’ rights and security and shares a case where we assisted a client in recovering goods supplied to an insolvent residential building company and negotiated with the liquidator for resale.

Nick also covers the rise in unfair preference claims by

In this video update, Rob Shepley, Principal at Results Legal and head of the Commercial Division, shared insights on the firm’s recent efforts to help clients navigate different facets of business transactions successfully.

He offers insights into key aspects of business mergers, factors for strong shareholder agreements, and outlines our approach to devising trading documentation that streamlines negotiations.

Whether you’re seeking guidance on commercial transactions, drafting essential documents, or refining procurement strategies, our dedicated team is here to assist you every step of the way.

If we can assist in any way, please contact our team on 1300 757 534

In July 2023, the ATO implemented changes concerning the disclosure of tax debts, especially those exceeding $100,000, to credit reporting agencies.

By the end of the 2023-24 fiscal year, the ATO anticipates issuing over 50,000 debt disclosure notices to businesses.

These changes are already impacting businesses and adding additional uncertainty in the market. Results Legal has a specialist division that works with businesses that supply goods and services.

In this video, Anna Taylor, a Principal at Results Legal specialising in commercial litigation, specifically trade credit litigation, sheds light on the recent increase in ATO tax default registrations and its flow

In a recent legal battle at the County Court of Victoria, an international vehicle parts manufacturer faced a significant challenge: recovering a substantial debt of $1.3 m from an Australian distribution partner. However, what seemed like a straightforward debt recovery case took a contentious turn when the defendants filed a $1.3 m counterclaim.

The distributor counterclaimed, contending our client breached an alleged exclusive distribution agreement and/or engaged in misleading conduct and as such, sought damages under the Australian Consumer Law.

These allegations posed a serious threat not only to our client’s financial interests but also to their reputation in the

The first quarter of 2024 has continued to be a time of uncertainty in the commercial landscape.

It is important for professionals, advisors, and business leaders to stay informed and ready for legal and commercial changes.

In this video, Managing Director Karl Hill shares high-level insights on current trends in our core practice areas that are affecting our clients.

As we approach the final quarter of the financial year, we hope these insights assist as you shape your strategies for the coming months.

Topics covered in this video include:

• Trends in commercial disputes
• Factors influencing insolvency rates
• Impacts of
  
  Read more

A potential $4 million liability looming on the horizon would be nothing short of stressful for any business. After all, the likelihood of bankruptcy or significant layoffs to pay such a claim could mean the end of the business.

Our client, an international hotel manager, faced a commercial dispute with an owner of a hotel that our client managed.

The owner accused our client of breaching duties and implied contractual terms, leading to alleged losses of nearly $4 million, including damage and loss of revenue.

Our client counterclaimed for $300,000 in unpaid fees. 

We successfully negotiated a settlement, resulting in

When running a business, trust is paramount.

Unfortunately, our clients found out the hard way that a director in their company had been misusing company funds to the tune of $2.5 million for his own personal gain and to benefit his private entities.

Time is of the Essence

When dealing with cases of financial misconduct, time is of the essence. We swiftly obtained freezing orders against the director personally and his shareholding entity which traded with his other businesses. This was essential in preventing assets from being dissipated, leaving our clients (as creditors) with little to recover.

Once we had

Tailored and well-structured standard form contracts are the bedrock of robust commercial relationships, for both business and consumer relationships. They provide clarity for all parties and ensure businesses are compliant with their legal obligations.

By proactively outlining and communicating equitable terms by way of a standard form contract, businesses not only mitigate the risk of customer actions in respect of the contract for uncertainty or unfair terms, but also cultivate trust, credibility, and enduring relationships with clients.

However, even the most robust contract will not prevent claims of unfair contract terms.

This was demonstrated in a case where we represented

Read more

In this video, Results Legal Manging Director Karl Hill discusses what we’re seeing in the trade credit and debt recovery sector in more detail.

Our goal is to assist credit managers and professionals in the credit industry by providing valuable insights into the changing economic and financial landscape.

By staying informed about evolving patterns, you can effectively manage credit risks and identify opportunities to position your business for success. Understanding developments in trade credit and debt recovery will enable you to create strategies for risk mitigation and capitalise on growth prospects in a fluctuating market. This knowledge is vital for

As the changes to the Unfair Contract Terms Regime have now come into effect, many of our clients have been seeking clarification on what this means for their businesses.

With the new legislation in place, it’s important for companies to fully understand their obligations and ensure they are compliant.

Over the last few months, we have received a range of questions regarding the Unfair Contract Terms Regime, from what constitutes an unfair term to how to draft contracts that align with the new regulations.

In the video below, Special Counsel Robert Shepley has provided answers to some of the most

Our primary goal is to achieve better commercial outcomes for our clients.

With that in mind, we’re proud to announce the appointment of Special Counsel Robert Shepley who has joined Results to head up our new commercial division.

Results Legal has been a specialist in commercial dispute resolution, focusing on areas such as debt recovery, insolvency, and commercial litigation since its inception.

Our goal is to proactively assist clients in achieving the best possible commercial results. Managing Director Karl Hill said of the appointment, “We believe that early involvement in a transaction is crucial for avoiding disputes and ensuring cost-effective

From 9 November 2023, the amended Unfair Contract Terms Regime is in effect.

 It is crucial for Australian businesses and their legal teams to be fully aware of the potential risks involved.

The consequences of non-compliance include hefty penalties and increased exposure to legal disputes.

Special Counsel Robert Shepley has created the Corporate Counsel’s Guide to the Unfair Contract Terms Regime to help legal teams ensure that their businesses are protected from the risks of unfair terms, ultimately safeguarding their commercial interests.

Download the Corporate Counsel’s Guide to the Unfair Contract Terms Regime

Enter your details below and

The current market is challenging and the effects on businesses from COVID are still playing out.

In a recent video, Managing Director Karl Hill provides valuable insights into the market conditions that our clients are experiencing, sharing not only an overview of trends we are seeing in our areas of specialisation, industry trends and recent regulatory changes, but also touching on some of the key matters we are working on.

Topics covered in this video include:

• Banking & Finance
• Shareholder & Partnership Disputes
• Insolvency & Restructuring
• Trade Credit & Debt Recovery
• Changes to the Unfair Contract Terms Regime

We have been working with the team at Atradius Collections since 2011. Over the past 5 years, Atradius has gradually consolidated its legal work, with Results Legal becoming the primary firm nationwide.

In this video, Atradius’ Operations Manager David Finn shares how this decision has positively impacted his day-to-day responsibilities at Atradius.

“I really appreciate clear concise simple advice so I can do my job. Since giving most of our work to Results Legal it has meant a lot less of a headache for me.”  

Above all else, our main objective is to deliver results for our clients. We prioritise

With the introduction of Unfair Contract Terms Regime on November 9th, it is more important than ever for creditors to ensure that their Credit Documentation and Terms of Trade are compliant with existing laws – as failure to do so can now result in your business being exposed to not only increased legal disputes but also new punitive penalties.

In this article, we’ll discuss what these changes mean for you as a creditor and how best approach updating or reviewing the relevant documentation within your business.

When it comes to trade credit, it’s crucial to have a reliable and trustworthy legal partner who can offer sound advice.

We asked Maria Schandl, the National Credit Manager for Stramit, why she chooses to work with the team from Results Legal.

“I like their approach – they are ethical, and work with integrity. We are given clear guidelines about what needs to be done, by when, within what timeframe and at what cost. They coach me through their recommendations and help me come to the right decision for the business.”

Throughout our discussion, Maria kept coming back to strategic

This session was presented at a seminar titled “Unfair Contract Terms Legislation” organised jointly by Results Legal, Access Intell and BICB on Friday 14th July, 2023.

l

Ready to get started?

We are offering a no cost review of your terms of trade or credit documentation.

To take advantage of this offer, upload your documentation via our Unfair Contract Terms form.

We will perform a complimentary review of your terms and conditions of trade and any other standard

From 9 November, 2023, sweeping reforms of the unfair contract terms regime will commence.
This checklist aims to help you assess your standard form contracts and identify any terms that could be considered ‘unfair’ under the new regime.

In what we regard as onerous and punitive reforms, the new unfair contract terms law (UCT) coming into effect on 9 November this year will affect thousands of businesses’ standard form contracts.

Now is the time to review your terms and conditions of trade and any other standard form contracts on which you trade (e.g. purchase order conditions, consignment agreements, etc).

What is the new unfair contract terms law?

The Treasury Laws Amendment (More Competition, Better Prices) Act 2022 (Cth) was enacted into law on 9 November 2022 and enters into force on 9 November 2023.

What does this mean?

Onerous and punishing – the new unfair contract terms regime will affect thousands of businesses standard form of contracts.

Is your business prepared for the changes? 

Join us at 12pm on Wednesday, May 24th as we hear Anna Taylor – Principal at Results Legal and Jeff George – Head of Risk and Group Services of NCI discuss the upcoming changes to the unfair contract terms regime which come into force on 9 November 2023.

About the Webinar

The changes to the unfair contract terms regime bring about significant changes which will likely affect all