Key Takeaways
- Dispute: $119,226.75 in unpaid invoices across three NSW sites
- Court: District Court of NSW
- Result: Settled for $35,000 in two guaranteed instalments with a Consent Judgment
Situation
Alpha Painting Pty Ltd had done the work. Painting and decorating across three separate sites in NSW for Monkey Painting Group Pty Ltd. Purchase orders were signed. Agreements were in place. The invoices totalled $119,226.75.
Then the payments stopped.
Alpha Painting tried to sort it out directly. Multiple attempts to collect. Phone calls, emails, follow-ups. Monkey Painting Group ignored every one. When a business you've contracted with simply refuses to pay what they owe, your options narrow quickly.
Stakes
For a painting contractor, $119K sitting in unpaid invoices isn't an abstract number. That's materials already purchased, wages already paid, and cash flow already committed to the next job. Every month those invoices sat unpaid, Alpha Painting carried the cost of work they'd completed in good faith.
Going to court seemed like the obvious answer. But District Court litigation in NSW can stretch for 12 to 18 months or longer. Legal costs add up. And even a judgment in your favour doesn't guarantee you'll actually collect, especially if the debtor's financial position is shaky.
Strategy
We filed a Statement of Claim in the District Court of NSW on 5 April 2022. That put Monkey Painting Group on formal notice: this wasn't going away.
But filing was the opening move, not the endgame. Rather than pushing straight for a contested hearing (with all the time and cost that brings), we used the court proceedings as a platform for structured negotiations. The claim was strong. The invoices were documented. The agreements were clear. That gave us a solid position at the table.
Through detailed negotiations, we drafted a Deed of Settlement and Release. The terms were specific: $35,000 paid in two equal instalments. A mutual release and discharge between both parties. A Consent Judgment filed to dismiss the proceedings. Each side bore their own legal costs.
Outcome
Was $35,000 the full $119,226.75 owed? No. But here's what Alpha Painting actually got: certainty.
They got a binding agreement with a payment schedule. They got a Consent Judgment on file, which meant that if Monkey Painting Group missed a payment, enforcement was straightforward. They avoided 12+ months of contested litigation, the legal fees that come with it, and the real risk of winning a judgment against a company that might not be able to pay it anyway.
Sometimes recovering a guaranteed $35,000 now is worth more than chasing $119,000 through a system where even winning doesn't mean getting paid.
The matter was resolved. Alpha Painting could move on to their next contract without an unresolved dispute hanging over the business.
Talk to Us About Unpaid Invoices
If your business is carrying unpaid invoices and the other side won't engage, early legal action changes the dynamic. The difference between recovering something and recovering nothing often comes down to how quickly you act and whether you've got a lawyer who knows when to push for court and when to push for a deal. Call us on 1300 011 149 or get in touch online to talk through your options.
Legal disclaimer: This case study describes the outcome of a specific matter settled on its own facts and circumstances. Past results do not guarantee similar outcomes. Every claim involves different injuries, losses, and legal issues. This article is general information, not legal advice. If you need advice about a commercial dispute, contact State Law Group directly.
