You work as a lawyer in 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

ByJamez

Assessment Details

Purpose 

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 required to read the following case scenario and then answer the questions below.

You work as a lawyer in 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 totaling 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.

You are to advise Tom and Golce & Habbana as to the following:

  • Draft a brief solicitor’s letter of demand addressed to Alexander. The letter should contain all the necessary information required for a letter of demand. 
  • In the event that the matter proceeds to litigation, advise Golce and Habbana what Court you would commence proceedings in and why. 
  • 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. 
  • Discuss whether you can take any action against any of the directors of Alexander and on what basis.

Summary of the Assessment Requirements

The assessment requires students to prepare a legal report analysing the Australian court system and the rights and remedies available in civil law, using the provided case scenario involving Golce & Habbana and Alexander Couture Pty Ltd.
Students must demonstrate understanding of legal processes, jurisdictional reasoning, and enforcement mechanisms within civil litigation.

The assessment requires students to address four key tasks:

    • Parties involved
    • Amount owed
    • Purpose of the letter
    • Deadline for payment
    • Possible legal action for non-payment
    • Jurisdiction
    • Monetary value of the claim
    • Nature of the dispute (civil/commercial)
    • Writ for the levy of property
    • Garnishee orders
    • Examination orders
    • Charging orders
    • Why each option may be effective in recovering the $850,000
    • Potential breaches of directors’ duties
    • Insolvent trading concerns
    • Misuse of company funds
    • The legal basis for lifting the corporate veil

    Discuss whether action can be taken against the company directors, addressing:

    Advise on effective enforcement options if Golce & Habbana is successful in Court, such as:

    Identify the appropriate Court for initiating proceedings if litigation becomes necessary, with justification based on:

    Draft a solicitor’s letter of demand to Alexander Couture Pty Ltd, including:

    These tasks collectively assess the student’s understanding of civil procedure, contract enforcement, directors’ liability, and court hierarchy within Australia.

    How the Academic Mentor Guided the Student Step-by-Step Approach

    Step 1: Understanding the Scenario and Requirements

    The mentor began by helping the student carefully interpret the scenario and break down the four required components. Emphasis was placed on identifying:

    • The legal issues
    • The relevant statutes
    • The civil processes involved

    This ensured the student understood the context before starting the report.

    Step 2: Structuring the Report

    The mentor guided the student to follow a clear structure:

    1. Introduction
    2. Letter of Demand
    3. Court Selection and Jurisdiction
    4. Enforcement Options
    5. Director Liability
    6. Conclusion

    This structure aligned directly with the assessment questions.

    Step 3: Drafting the Letter of Demand

    The mentor explained:

    • The purpose of a solicitor’s letter
    • The professional tone required
    • Mandatory components (amount owed, timeframe, consequences)

    The student was guided to draft a concise, legally compliant letter using the scenario’s facts, ensuring accuracy and relevance.

    Step 4: Analysing Court Jurisdiction

    The mentor walked the student through:

    • The hierarchy of Australian courts
    • Monetary thresholds
    • The relevance of the Supreme Court of NSW for high-value commercial disputes

    The student learned how to justify their recommendation based on both legislation and practical considerations.

    Step 5: Identifying Enforcement Options

    The mentor explained each enforcement mechanism and guided the student to match them to Alexander Couture’s situation.
    For example:

    • Writs against property due to the company’s assets
    • Actions against bank accounts for quicker recovery
    • Post-judgment examinations for financial clarity

    This taught the student how legal remedies align with factual circumstances.

    Step 6: Assessing Director Liability

    The mentor helped the student analyse:

    • Indicators of insolvent trading
    • Misappropriation of company funds
    • Potential breaches under the Corporations Act
    • When lifting the corporate veil may be permissible

    This section required applying both statutory law and case principles, which the mentor explained with examples.

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