WA Court enforces liquidators’ settlement against former Olive Grove directors

The Supreme Court of Western Australia has entered judgment for the liquidators of Olive Grove Investments Pty Ltd against the company’s former directors, enforcing a settlement deed that resolved insolvent trading, voidable transaction and statutory duty claims brought in the company’s liquidation.

Jeremy Nipps and Thomas Birch of Cor Cordis, as joint and several liquidators of Olive Grove, commenced proceedings against the company’s former directors in 2024, alleging that Olive Grove incurred debts while insolvent between June 1996 and December 2022, and again between December 2022 and June 2023.

The proceeding settled in November 2025 under a formal deed of settlement and release. Under that deed, the former directors agreed to pay $454,584.56 to the liquidators, with payment due by the earlier of 5:00 p.m. on 30 January 2026 or settlement of a property on Hicks Road in Myrup, near Esperance. The deed also required the defendants to market and sell the property within 90 days, and granted the liquidators a charge over the defendants’ interests in the property as security for payment.

The liquidators returned to Court after the settlement sum was not paid. They sought judgment for the settlement sum, interest and costs, together with orders allowing the property to be sold and appointing the liquidators as trustees for sale. The defendants ultimately did not oppose the application.

Justice Lundberg held that the case was an appropriate one for summary enforcement of the settlement deed within the existing proceeding, rather than requiring the liquidators to commence fresh proceedings. The Court accepted that it had power to enforce a compromise of proceedings by interlocutory application where justice can be done through that procedure.

Several factors supported that approach. The settlement was recorded in a formal deed prepared by solicitors and signed by all parties; the defendants had acknowledged receiving independent legal advice; the deed expressly allowed the liquidators to return to Court for judgment on default; there was no challenge to the deed’s validity or enforceability; and no contested factual issues required a trial. The Court also accepted that forcing the liquidators to bring fresh enforcement proceedings would add cost and delay to the liquidation.

The property sale orders did not prevent summary enforcement, even though the Myrup property was not part of the original insolvent trading proceeding. The Court treated the sale regime as part of the agreed mechanism for paying the settlement sum, noting that the deed had been drafted to make the property available as security and that the defendants raised no objection.

The Court entered judgment for the liquidators against the former directors in the sum of $454,584.56, together with interest and costs, and made orders for the sale of the Myrup property.

Read the decision here.

Gina Nofal of Hall & Wilcox acted for the liquidators and the company, while Paul Shanahan of Hammond Legal acted for the former directors.