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A creditor of an NSW firm has launched proceedings against its sole director over more than $135,000 in judgment debt.
Robert Dean, a creditor of My Solicitors – trading as Klievens and Associates – has been granted leave to commence proceedings against sole director, secretary and shareholder Mitchell Klievens.
The proceedings concern default judgments against My Solicitors in the NSW Local Court and District Court for a total of $136,589.44.
Dean alleged he worked for My Solicitors for nine months in 2021.
Justice Cameron Moore of the Federal Court said leave should be granted in circumstances where Dean appears to be the sole creditor, the liquidator does not oppose a grant of leave, and “no proper argument against the grant of leave has been identified”.
In addition to the request for leave, Dean sought an order that My Solicitors not be deregistered until August 2026.
While this application was originally dismissed by a registrar, Dean attempted to press the issue again before Justice Moore.
Dean told the Federal Court he had sought the application “in order to forestall the possibility of deregistration interfering with proceedings he wishes to take against Klievens”.
However, Justice Moore said doing so would mean setting a date that was “sufficiently far in the future to accommodate all contingencies and possible delays”, which would be “quite difficult” in circumstances where Dean has not yet commenced proceedings.
“Further, setting a date a long time in the future potentially prolongs the liquidation and prolongs the time during which liquidation expenses will be incurred (including but not limited to administrative expenses such as annual fees),” Justice Moore said.
To “avoid unnecessary procedural complexity” with the registrar’s decision, Justice Moore ordered the liquidator to advise Dean with one month’s notice of lodging an end-of-administration return with the Australian Securities and Investments Commission.
This would provide Dean with four months’ notice of any impending deregistration, which should provide him with enough time to make a fresh application to defer the deregistration.
“By that time, there might also be greater clarity as to how long might be required for the deferral of the deregistration and why.
“The proceedings will stay on foot in the meantime,” Justice Moore said.
The matter has been set down for a further case management hearing in November.
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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