MEMORANDUM

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Victoria University *

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123

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Accounting

Date

Apr 3, 2024

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MEMORANDUM To: Supervisor From: Re: Lesley Hoeben (t/as Trouble Free Events) v Happy Mercury Festivals Lty Limited Date: 27 February 2024 Following our discussion, we have successfully obtained judgement against Happy Mercury Festivals Pty Limited (“HMF”) for the sum of $146,891.25 plus any accrued interests and costs. Here is a summary of the enforcement methods available against the judgement debtor, along with the necessary procedures and relevant court forms for each method. If the event the Debtor fails to satisfy the judgement, we may pursue in accordance with r 66.02 CCCPR: 1. Attachment of earnings order o 72 An attachment of earnings order can be sought which if the judgement debtor receive salary from a third party, a portion can be deducted and paid directly to the creditor. However, this is the less efficient method for our client as it takes a considerable amount of time to recover the full amount owed. 2. Attachment of debt (garnishee order) o 71 A garnishee order can be issued against any monies owing to the debtor at the time of service of the order. This includes the debtor’s bank accounts, term deposits, contract payments, or any other payments owed to the debtor. Garnishee orders are typically cost- effective and efficient in recovering the judgement amount. The following procedure is required: 1) Applying to a Judge of the County Court. 2) Filling the required summons in Form 71A accompanied by a supporting affidavit that satisfies the requirements in r 71.01.70. 3) If leave is granted, Form 71A needs to be triplicate and fee must be paid with the Registry within 30 days of the order. 4) The garnishee summons and all supporting affidavits will need to be served to the judgement debtor and garnishee within 7 days prior to the hearing. 3. Warrant of seizure and sale under o 69 A warrant of seizure and sale allows for seizure of the judgment debtor’s property, goods, and chattels, including land. Personal interests in property, such as licenses cannot be

seized. The warrant will authorise the sheriff’s office to seize goods belonging to or held by the judgment debtor which can be sold to fund the payment of the judgement debt. The procedure for enforcing a warrant of seizure and sale under o 69 is as follows: 1) Form 68A is required to apply for a warrant of seizure and sale with supporting affidavit that satisfies the requirement including. - Exhibiting the warrant - Exhibiting the advertisement of auction - Exhibiting the relevant land titles office search (notice under s 52(2) of the Transfer of Land Act 1958) - Priority issues which may arise - Explain the delay. 2) File the form with the County Court and pay the relevant fees. 3) Send the warrant once granted to the Sheriff’s office for enforcement. 4. Bankruptcy If the judgement debtor has insufficient funds to pay all his creditors, commencing proceedings in bankruptcy is an option. However, it is a costly, length and technical process, with secured creditors having priority over unsecured creditors such as judgment creditors. The judgement creditor may have difficulty in recovering their money from the debtor due to insufficient assets to pay all the creditors. This method is not relevant for our client as the judgement debtor has sufficient assets to cover the judgement. Recommendations Based on the specific assets of the judgment debtor, the following recommendations are proposed for enforcement: A. Realty: office premises I recommend a warrant to seize and sell the property, considering the property is valued at $1,300,000.00 and has a mortgage at HVBO bank. With consideration to costs required to be paid for the execution of selling the property, there would still be sufficient funds to cover the judgment order to Lesley. However, as the property has a joint ownership with Riley McGinty and Josephine McGinty. We are unsure of the interest of other persons to the real estate and therefore cannot determine how much of the sale can be covered to the judgment. B. Business bank account Applying for a garnishee order as there is a balance of $30,000.00 in the business account as advised. The order can successfully recover the balance and have it paid directly to Lesley’s judgment order.

C. Fixed term deposit Similarly, a garnishee order should be pursued for the balance of $25,000.00 in the fixed term account. D. Motor Vehicle No enforcement method as the vehicle is under finance and does not belong to HMF. E. Debt Applying for a garnishee order on the debt owed to the judgment debtor for ticket sales of the Ballina Blues Festival at $130,000. F. Office equipment An application for a warrant to seize property and sell non-secured items is recommended to recover the funds for the order. I recommend Lesley to first pursue garnishee orders to recover the monies in the business bank account, fixed term deposit and debt owed as they are cost-effective and efficient. According to the last bank statement the balance would be $185,000.00 which is sufficient to satisfy the order. If unsuccessful, I recommend Lesley to pursue a warrant to seize and sell the office premises being 16 Harrison Street, Hamilton, VIC to cover the debt. Given the property’s substantial value of over $1,300,000.00, it is sufficient to cover the outstanding mortgage, overdue interest, sheriffs costs of enforcement and all relevant costs required to the sale. Considering concerns regarding joint ownership of the property, it is advised to find out Riley’s interest in the property to ensure sufficient coverage of the judgment debt after all the costs are satisfied.

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