Titan Interactive - Case Update

Pitcher Partners have secured an early victory in a case brought by the liquidator of Titan Interactive, convincing the Federal Court that a trial of a separate legal question should be held to determine their potential liability under s 1324 of the Corporations Act 2001 for allegedly aiding and abetting Titan’s directors in breaching their duties to the company.

Titan was a digital marketing agency based in Western Australia. The company entered voluntary administration in December 2018 and transitioned into liquidation in February 2019, with Jennifer Low appointed as liquidator. In 2023, the liquidator brought proceedings against Titan’s directors, alleging they engaged in insolvent trading and breached their statutory duties under ss 588G and 180 of the Corporations Act 2001. The liquidator also named Pitcher Partners, who acted as Titan’s accountants and tax agents, as a defendant, accusing the firm of aiding and abetting the directors’ contraventions and of breaching contractual and tortious duties by failing to advise Titan properly about the legal effect of tax payment arrangements entered into with the Commissioner of Taxation. Among other relief which was not the subject of this application, the liquidator sought damages under s 1324 of the Corporations Act 2001.

The issue on this application was whether a separate trial should be held to determine whether, assuming all the facts pleaded as proven, the liquidator could obtain relief against Pitcher Partners under s 1324.

The Court allowed the application to determine this question separately before trial, concluding it was “just and convenient” to do so, despite the fact that resolving this question would not dispose of the entire case. While the separate question would not eliminate all claims or factual disputes, it may reduce the scope of trial or facilitate settlement.

In addition, the Court noted that the separate hearing would not involve new factual disputes and would likely require only one day of Court time. As such, it would not unduly delay the proceedings and could yield clarity about the viability of a substantial portion of the liquidator’s claims against Pitcher Partners.

Read the decision HERE.

Professionals involved:

• Mark Hoffman KC of Bar Chambers with Jonathan Slack-Smith of Francis Burt Chambers (instructed by Hall & Wilcox) for Pitcher Partners

• Wayne Zappia of Shoreline Chambers with William MacDonald of Roe Legal Services for Jennifer Low as liquidator