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Welcome to the Winter and second edition of the MBBF Newsletter. There have been many interesting and controversial developments in the legal system. As has been anticipated for many months, the sub prime mort- gage crisis being experienced in the United States of America together with uncertain petrol prices, increasing interest rates and general economic downturn has caused further uncertainty in our community regarding financial prosperity. The increased interest rates caused by numerous factors have put significant financial pressure on middle and lower class families which has led to an increased number of mortgage defaults and defaults under finance agreements.
Importantly the most senior legal position in the land, the Chief Justice of the High Court has been determined. Justice Robert French has been nominated by the Commonwealth Attorney General to replace the retiring Chief Justice His Honour Mr Murray Gleeson who retires this month just before his 70th birthday in accordance with High Court regulations. |
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In New South Wales, another case involving Rugby League football has made headlines involving Sonny Bill Williams and the Canterbury League Bankstown Football Club. Amendments to the De Facto legal legislation are presently before Parliament so as to make uniform the legal rights of De Facto partners and partners who are married. The bill and its contents are sure to provoke spirited debate between interested parties.
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| In this issue: |
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| Ohh Sonny Boy…… have I got the right words to the song? |
| Fans have reacted with resignation… Legal Representatives react with the legal argument…is the contract valid or invalid?
Sonny Bill Williams signed and committed himself to the Bulldogs for five years little more than a year before he walked out on the club in the most explosive of circumstances.
It throws huge questions over Toulon’s trumping of Williams, signed, sealed and delivered by his manager Khoder Nasser, and sets up what will be the game’s costliest legal battle since the Super
League war. If nothing else, how safe can Toulon feel about his signature on their own deal?
The contract was tendered to the NSW Supreme Court as part of the affidavit to stop Williams playing rugby in France.The contract allegedly reveals the guaranteed $2 million Williams would have earned along with the ability to inflate the amount with third- party sponsorships.
After a week of having failed to find Williams or Nasser, the Bulldogs and NRL went to court and were granted substitute serv- ices. In essence, it allows them to move forward with the case where they will seek an injunction against Williams playing elsewhere.
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The Legal Perspective:
An injunction is a court order requiring an individual to do or omit doing a specific action. It is an extraordinary remedy that courts utilise in special cases where preservation of the status quo or taking some specific action is required in order to prevent possible injustice. Injunctive relief is a discretionary power of the court in which the court, upon deciding that the plaintiff’s rights are being violated, balances the irreparablility of injuries and inadequacy of damages if an injunction were not granted against the damages that grant- ing an injunction would cause.
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| An individual who has been given adequate notice of an injunction but fails to follow the court’s orders may be pun- ished for contempt of court.
Williams, Nasser and Toulon president Mourad Boudjellal were added to the Bulldogs’ lawsuit. They added both Nasser and Toulon to the proceedings on the basis of them having engaged in and inducing Sonny Bill to break his contract.
In a bid to shake free of the contract, it is alleged Williams plans to challenge the validity of the NRL’s salary cap in what will be a watershed moment for the game. The alleged legal argument is that because the salary is so crucial to the contract, an illegal salary cap will rule the contract invalid. It is uncertain this is Williams’ argu- ment as yet, he is yet to reveal any legal representation.
What makes a contract?
A contract involves certain basic elements:
• Agreement (arising from an offer and an acceptance);
• Consideration – an exchange of some benefit or some- thing of value by the parties, for example a party pays a sum of money for goods supplied by another party, or money is paid for work carried out by the other party; and
• An intention to enter into legal relations – that is, the parties intended to enter into a legally binding agree- ment (although this is often not specifically stated, it is usually implied).
The parties must also have the legal capacity to enter into a con- tract, for example in relation to age and mental capacity.
Who decides the terms of a contract?
Generally the terms of a contract are for the parties to decide. However, the law may ‘imply’ terms into the contract. One implied term is that goods sold for a particular purpose are able to be used for that purpose – for example that a machine which is sold as a clothes dryer will dry your clothes.
Under the New South Wales Contracts Review Act the terms of a contract may be altered or disregarded if they are unjust or result from duress or unequal bargaining power. However, the courts do not try to draw up contracts for parties.
What is an unjust contract?
The Contracts Review Act describes an unjust contract as one that is unconscionable, harsh or oppressive.
For instance, an unjust contract could be one where one party has been tricked or pressured by the other, or where a person has been encouraged to enter a contract by another party who was aware of the person’s inability to understand the terms of the contract.
Some of the things a court will look at when deciding if a contract is unjust or harsh include unequal bargaining positions of the par- ties; unreasonable or difficult-to-comply-with conditions in the contract; and the opportunity the parties had to obtain independent legal advice.
Does a contract have to be in writing?
Generally contracts do not have to be in writing, but there are particular cases when the contract must be in writing for it to be binding, for example guarantees, the sale of a house, and credit sales or other credit agreements.
However, it is usually better to have the details of an agreement and any variation in writing so both parties have a record of what has been agreed and are aware of what they are obliged to do, particularly when money is involved.
Are you bound by a clause you did not read?
If you sign a written contract then generally you are bound by all of its terms even if you did not read or understand them.
There are various types of contracts which you may come across in everyday life which do not require your signature, for example a parking ticket or a drycleaning docket which has clauses printed on the back. Generally the rule is that you are bound by the clauses if you have read them or if you knew they were there but did not bother to read them, or if the other person took reasonable steps to draw them to your attention.
It is therefore extremely important that you read all the terms of a contract before you enter into it. You should not sign any document until you are fully aware of what its terms and conditions are and what they mean.
What happens if the terms of a contract are broken?
Once you make a contract you will be committing a breach if you do not comply with its terms, or if you change your mind and decide not to perform your side of the contract.
If a party breaches a contract there are a number of remedies available, including:
• Damages (a sum of money) to compensate the ‘innocent’ party for any loss suffered – this is the most common remedy;
• A court order requiring the party who has breached the contract to carry out his/her obligations;
• A court order forbidding the party from breaching the contract; and
• A court order declaring that the contract is at an end and requiring the party who has breached the contract to put the ‘innocent’ party in the position he/she was in before the contract was entered into
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Once Were Warriors Or Our Happy Clients |
| There have been huge changes in the legal profession – especially in its internal structures and in legal disputing procedures over the last 30 years. “The vanishing trial” phenomenon is just one aspect, but it is a vital one.
The Courts are increasingly encouraging or compelling parties to consider alternate dispute resolution processes before being able to either file initial documents in the Court or before Hearing dates are being allocated.
Today, any party wishing to commence proceedings involving parenting Orders will be required to attend before an authorised family dispute practitioner and obtain a certificate from that practitioner before any application for a parenting Order can be filed in either The Family Court or The Federal Magistrates Court.
By compelling parties to attend mediation, Parliament is using its powers to ensure that parties give real consideration to attempting to resolve problems themselves without using the Court system.
Parliament believes the new system will result in healthier and wealthier. This new model of our lawyering practice builds on the skills in knowledge, of our traditional legal practice and we have more clients moving through our firm at a faster rate.
Reframing the lawyer-client relationship as a working partnership has profound implications for the balance of power in lawyer-client relationships. Such partnership empowers the client not only to review and protect decisions made by the lawyer, but also to participate in them.
Imagine a ship without a rudder. It will not go anywhere, but imagine a client with the direction and expertise of the lawyer allowing him or her to take a greater responsibility for choices and outcomes. Having your hand on the steering wheel, and held every step of the way. It is a win win win for you, the client, the lawyer and the Family court.
For any Family Law enquiry, please contact Harry Freedman on 9264 3877.
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| Are your assets protected? |
Recent changes to the Bankruptcy Act and Family Law Act in 2004-2006 have arguably increased the rights of Trustees in Bankruptcy to claw back property to be used in the distribution of the Bankrupts Estate to Creditors.
This begs the question ARE YOUR ASSETS PROTECTED?
The amendments to the Bankruptcy Act in 2006 are summarised as follows:
1. Reducing the Insolvency Defence to undervalued transactions for related parties;
2. Introducing the “reasonableness test”;
3. Introducing the presumption of insolvency where there is no proper documentation or records;
4. Introducing the Trustee’s power over natural persons who have provided a benefit to the bankrupt. Related entity is defined in Section 5 of the Bankruptcy Act, to include a relative
of the person, body corporate, a beneficiary under trust and trustee of a trust, a member of a partnership.
In 2005 there have also been some controversial Amendments to the Family Law
Act. These can be summarised as follows:
1. Powers of the Bankruptcy Trustee to challenge a binding Financial
Agreement;
2. Streamlining Bankruptcy and Family Law proceedings;
3. Changes to Superannuation;
4. Making void payments by third parties on behalf of the Bankrupt in certain schemes including Superannuation contributions.
If you would like more advice in relation to the above please contact our office on 9264 3877.
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Use and operation of Power of Attorney |
The Powers of Attorney act of 2003 introduced a new form, redefined powers to give benefits and provided a different responsibility when signing an enduring certificate whereby there is now a focus on the donor and their capacity.
There are times in life when one must prepare if for the possibility, of succumbing to a disease of old age, i.e. Alzheimer’s type dementia, one should give serious thought to giving Power of Attorney and enduring guardianship to a trusted person. It is important to choose the attorney carefully and that attorney should be absolutely trustworthy as their actions are subject to little supervision, particularly if the principal or giver loses capacity. The prescribed form of Power of Attorney gives the donor an options list and this power can operate:
Immediately;
When the attorney accepts appointment; Between certain specified dates;
“When my attorney considers that I need assistance in managing my affairs”; or “Other”.
More commonly the principal may stipulate that it is only to commence on their loss of capacity.
Section 11 of the act it is clear that the short form does not authorise the attorney to use the principals fund to give gifts unless the principal expressly authorises the attorney to do so.
Section 12 of the act provides that the form does not include the authority to take a benefit and that any benefit would need to be expressly included in the Power of Attorney document;
In Section 13 of the act it is clear that the statutory short form does not authorise the attorney to use the principal’s fund to benefit third parties unless the principal expressly authorises the attorney to do so.
Now stringent requirements exist in order that the person giving the power of attorney is judged to have the capacity to do so i.e.: to be capable of granting an enduring Power of Attorney The principal must understand the nature and effect of the document when explained to them. They must be able to take in what is being explained and be able to demonstrate their understanding by communicat- ing this back to the person explaining the document. There are seven matters that a principal must understand to be able to competently grant an enduring Power of Attorney being:
The ability for a principal to restrict or specify the power to be given to the attorney;
That the attorney’s power begins when authorised by the principal and accepted by the attorney or when the principal loses their mental capacity at such other time;
The attorney is able to do anything with the principal’s property which the principal could have done (subject to restrictions listed above);
Without referring to the principal your attorney can buy and sell real estate, shares and other assets of the principal;
The Power of Attorney may be revoked at anytime by the principal but only when they have the mental capacity to do so; Power under the Power of Attorney continues even if the principal loses capacity;
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The principal can not supervise the use of the Power of
Attorney if they have lost their mental capacity.
Finally, lifestyle decisions are not covered under such a Power of Attorney and it is common to appoint an enduring guardian who can:
Decide where you live;
Decide what healthcare you receive;
Decide what other clients are personal services;
To consent to the carrying out of medical and dental treatment.
These are important decisions that a family ought to discuss. Should you require further information on the above topic please do not hesitate to contact our office.
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Reforms To Immigration Detention Systems
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The Federal Government has announced that amendments will be made to the Immigration Detention System so as to use detention for non lawful immigrants only as a last resort rather than (for the previous mandatory, indefinite and non reviewable Immigration Detention System).
Milne Berry Berger Freedman has conducted the two largest and most high profile claims against the Commonwealth arising from misconduct by Immigration and other Commonwealth officials relating to foreign born people in the matter of Vivian Solon who was in fact an Australian Citizen wrongfully deported by the Commonwealth and for whom the newspapers have reported as being awarded a multi million dollar settlement as well as Cornelia Rau an Australian Permanent Resident suffering from significant ill health who was wrongfully and improperly detained at the Baxter Detention Centre. She too was awarded a multi million dollar compensation package as a consequence of proceedings MBBF commenced against the Commonwealth.
The management of the detention centre was criticized and condemned by many sections of our community as well as sections of the wider world community. The President of the Law Counsel Ross Ray, QC expressed his opinion that the proposed amendments would “go some way to restoring Australia’s tarnished reputation among International Human Rights Bodies”. The amendments will allow for
3 monthly reviews, access to legal assistance as well as an independent review of unfavourable decisions.
The United Nations Committee against torture recommended to Australia that they abolish mandatory detention and should only use it as a last resort.
MBBF has two accredited migration agents and is able to assist you with any migration issues.
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| New De Facto Financial Matters Amendment |
| The Commonwealth Government has introduced for debate a pro- posed amendment to the Family Law Act empowering the Family Court to deal with property and spousal matters involving de facto couples which were previously dealt with by State Courts. There are many differing views as to whether or not it is appropriate for such a significant change to take place. At present the Family Court and the Federal Magistrates Court are empowered to deal with all matters involving children of couples whether they be married or in a de facto relationship but not financial matters.
This situation leaves de facto couples whose relationship has broken down and who have children needing to commence two separate sets of proceedings in the event negotiations cannot resolve these issues. In this regard it would be appropriate for a single set of proceedings being able to deal with all issues.
The changes do not only deal with which court has the power to determine the matters but also makes amendments to the Property Relationships Act so as to direct lawyers and courts to take into account not merely contributions made by each of the parties during their relationships but also to take into account elements which are often described as the ‘future needs’ components which have only previously existed under the Family Law Act.
De Facto couples up until these amendments would divide the property based on the contributions that each of them had made to their pool of assets and standard of living but would not take into account matters such as with which parent did the child reside or disparity of income between the parties and many other issues.
Advocates who oppose the changes point to the expressed desire of de facto couples choosing their living arrangements thus avoiding going through a marriage and becoming subject to the Family Law Act. This opinion is embraced by many key couples who are entering into a second relationship and wish to limit claims that their new partners might bring against them if the relationship were to breakdown and effectively protect their assets for their children from their first relationships.
There will be much debate about these changes prior to the law being accepted. If you have any enquries please feel free to contact us.
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| A client or customer being placed into administration –can you still recover the money they owe you? |
| A client or customer being placed into administration –can you still recover the money they owe you? |
The frequent reaction of a creditor of a Company that goes into administration is “now I’ll never get paid”. Whilst a Company going into administration is often a bad sign, there are a number of possible outcomes from the administration that may result in you recovering the whole or part of your debt.
Most creditors owed money by a company that goes into Administration are unsecured. That is they do not hold Charges over the Company or it’s property and do not have mortgages over any of it’s assets. Likewise most creditors do not have the benefit of guarantees from a company’s officers or other people related to the Company in respect of the debt. Whilst there are limitations upon the rights of these “secured” creditors whilst a company is in administration, this article is primarily focused on “unsecured” creditors.
Where a Company is in financial stress or encounters problems with it’s ability to meet creditors demands, the Corporations Law (the
Law) provides a “safety valve” to the Company during which:
1. an experienced professional is appointed as Administrator to the Company
2. a moratorium period is placed on the recovery of debts. Within this period most creditors are prevented from commencing or continuing proceedings against the company. The purpose of this moratorium period is to allow the administrator time to ascertain the status of the company and report to creditors as to their options
3. an investigation will be undertaken of the companies financial position by the Administrator.
4. a recommendation will be made to creditors as to the future of the company; and
5. a vote will made by creditors on what course the administration of the company should take.
The Administrator is given strict timeframes within which it must convene meetings of creditors and provide recommendations as to what resolutions the creditors should pass at these meetings. The recommendations will be in respect of 3 alternate courses of action:
i. Terminating the administration. This means the company would be placed back in the hands of the Directors.
ii. Deed of Company Arrangement. This is a deed entered into between the Company, the administrator and the creditors. Such deeds take many forms and can end in either the Company eventually being handed back to Directors or being placed into liquidation.
iii. Winding the company up or liquidation.
In any one of the above alternatives a creditor may be provided with an opportunity to recover the whole or part of the debt.
Hence in order to maximise your opportunities of recovering any outstanding liabilities owed by a Company placed into administration, you (or an authorised representative) should:
• attend the various creditors meetings (of which there are usually at least 2); and
• obtain legal advice as to your rights and prospects of recovery.
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| Community Treatment Orders under the Mental Health Act 2007 |
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Mental Health is an ever present but often taboo topic in Australian Society. Yet many Australians are unaware of the Laws, Powers and
Policies that govern how society and government deal with such issues.
One such little known but potentially important power is found in Section 51 of the Mental Health Act (the Act). This section states that a Tribunal (formed pursuant to the Act) or Magistrate may make a Community Treatment Order authorising the compulsory treatment of a person.
An application for such an order may be made by certain persons including an authorised medical officer of mental institution or a medical practitioner who is familiar with the clinical history of the person. The tribunal or Magistrate will need to consider a number of matters before making such an order. These include the diagnosis, medical reports, proposed treatment plans and any other information placed before the tribunal or Magistrate (referred to in s 53 of the Act).
One of the purposes of the legislation is the proper treatment of such persons in situations where voluntary treatment has not been pos- sible. Once made, such an order will be an order of the court and hence enforceable as such hence therefore it is important that all relevant information is put before the Tribunal or Magistrate.
Such applications are held as soon as possible on limited notice to the interested parties. Where you have a concern in respect of an application or hearing of such an application it is important that legal advice be sought at your earliest opportunity.
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| Changes in MBBF Lives |
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Harry Freedman, Partner,
Anne-Marie Doueihy, Solicitor and
Stephen McGlynn, Associate, at a charity walk
organised by legal aid
for pro bono work. |
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Maureen Kersivien, secretary who won the MBBF Winter Award 2008, being judged as the best employee of the season.
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Our dear Jennifer Packer, our long standing book keeper and her new born Eloise Rose. |
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Mr Berger receiving the certificate from Dr Kogus, having completed a course on Management offered by the Australia-Israel Chamber of Commerce |
Milne Berry Berger & Freedman’s Contributions to the General community
Our firm and its employees also contribute to the general community by participating in various organisations and activities
including:
a) Duty solicitors at the Local Court;
b) Duty solicitors at the Family Court;
c) On the panel for Jewish care;
d) Participating and having membership with Rotary;
e) The members of the Gladesville Chamber of Commerce;
f) Members of the Law Council, Law Society, City of Sydney
Law Society,
g) Pro bono panel of the Law Society,
h) Board member of the MTC non profit organisation; and
i) Executive of Ryde Business Forum.
MBBF can provide the following services and price estimates
generally are:
Free letter of demand
Free 30 minute consultations for new clients
Preparing Debt Recovery Claim At court scale cost
Residential conveyancing from $1,500.00
Mortgage with purchase from $300.00
Will from $200.00
Power of Attorney from $200.00
Simple divorce from $750.00
Appointment of guardian from $200.00
Purchase of business from $1,200.00
Retail lease (lessor) from $1,200.00
Retail Lease (lessee) from $900.00
All these prices are exclusive of GST
Milne Berry Berger & Freedman
Prides itself on Having a Multicultural Philosophy
Various members of our staff speak the following languages:
Hindi, Malayalam, Tamil, Hungarian, Hebrew, Lebanese, French, Croatian and Italian.
MBBF’s Services
• Accident Claims
• Building Law and Arbitration
• Business Agreements
• Commercial Litigation
• Conveyancing
• Criminal Law
• Debt Recovery
• Estate and Retirement Planning
• Family Law and De facto Law
• Insolvency
• Intellectual and Industrial Property
• Joint Venture and Partnership Agreements
• Liquor and other Licensing Law
• Leases
• Local Government, Planning and Environmental Law
• Media, Entertainment and Defamation Law
• Mortgages
• Product Liability
• Probate and Administration
• Wills
• Power of Attorney
The comments and information herein does not constitute legal or professional advice. If you wish to seek any legal advice please contact us. The material presented in this newsletter is general commentary only. |