The defendants moved to set aside a default judgment and to dismiss the action on the basis that the individual plaintiff was an undischarged bankrupt and lacked capacity to sue or direct the corporate plaintiff.
The plaintiffs brought a cross-motion to remove the defendants' counsel, arguing he was in a conflict of interest and a potential witness.
The court dismissed the motion to remove counsel, finding no substantial risk to the administration of justice.
The court granted the motion to set aside the default judgment, noting the plaintiff failed to disclose her bankruptcy when obtaining it.
Finally, the court dismissed the action as a nullity and an abuse of process, as an undischarged bankrupt cannot commence an action or act as a corporate director under the Business Corporations Act.