Judgment

Liquidators can act as surgeon and undertaker: Judge

Whilst it might seem difficult to envisage how the appearance of independence can be maintained by insolvency practitioners acting as both surgeon and undertaker, Justice Paul McKerracher illuminates the way to envisagement. In Australian Securities and Investments Commission v Diploma Group Limited (No 5) [2017] FCA 1147  his honour last week granted leave to David Hodgson and Andrew Hewitt to enable the Grant Thornton partners to appoint themselves as administrators of…


Receivers’ appointor extracts discount on appeal

The issue of receivers’ fees and expenses is endlessly vexed it seems. In the Supreme Court of Victoria’s court of appeal this week judgment was delivered in relation to a lengthy battle fought between Hall Chadwick’s David Ross and Richard Albarran and their appointor. The pair were appointed receivers of Action Cycles in July 2011 by Gippsreal Ltd under a deed of appointment and indemnity which…


Lawyers’ cop tainted by Asden liquidation

Is Asden Developments the insolvency equivalent of an A-bomb? Its ex-director and her advisor were bankrupted, its first liquidator was admonished by the courts, and when the second liquidator tried to turn his predecessor’s humiliation into recoveries and fees, he lost. That was the initial fallout after Asden was placed into liquidation by its director back in late 2010. Now it seems even parties somewhat removed…


Ex-Jirsch partner to pay $115k over failed pub venture

Languishing in a Thai rehab clinic may or may not be a sound basis for defending oneself against a plaintiff intent on recovering impugned payments but either way Sam Henderson has likely discovered by now that he’s been ordered to pay a weighty slab of almost $663,000, awarded to liquidator Mike Smith yesterday In the Matter of Central Management (NSW) Pty Ltd [2017] NSWSC 1258. A former…


Extended TEN hearing prevails despite delays

The hearing into the adequacy of the disclosures contained in KordaMentha’s much-maligned report to the creditors of TEN Network Holdings (TNH) was always going to be run with extreme diligence by Supreme Court Justice Ashley Black. This is not only because SiN suspects that Justice Black conducts every hearing with extreme diligence but because TNH creditors are scheduled to vote on a momentous resolution to…


Trustee Thomson ordered to pay costs out of own pocket.

Veritas’s Thomson facing $250,000 costs order

Well litigation funder Doug Hayter has extracted himself from the debacle that is Young V Thomson (formerly trustee of the property of Young) [2017] FCAFC 140 but the same cannot quite be said for Veritas Advisory’s Louise Thomson, who will be forced to scrape together as much as a quarter of a million dollars from her own resources following last week’s judgment of the Federal Court…


Court backs hourly-based claim, slams ILRA transition

When the planets align, the wind blows fair and the detail is both accurate and abundant, the dispensers of justice are happy to approve liquidator remuneration claims on the basis of hourly rates without recourse to the inherently fee-reductive principles of proportionality. In the latest instalment in the growing genre of judgments spawned by Sakr Nominees Pty Limited [2017] NSWSC 668 Ferrier Hodgson partner George Georges has…


Ex-bankrupt and wife fail on trustee fee appeal

Ex-bankrupt Robert Coshott and his wife Ljiljana Coshott have failed in their attempts to challenge fees and remuneration payable to Nick Crouch and Shabnam Amirbeaggi, who were appointed trustees for the sale of a Bellevue Hill property held jointly by Mrs Coshott and her husband’s former trustee in bankruptcy, Max Prentice. Rubbing salt into the failure, the three judges of the Federal Court of Appeal ordered that…


Office of State Revenue staff erroneously made company a corporate trustee

Office of State Revenue error forced Cussen to court

There’s nothing like a howler in official government documentation – in this instance from the NSW Office of State Revenue – to disrupt the straightforward process of asset disposal, as Deloitte’s Neil Cussen learned in the curious case of Zerren Pty Ltd. Cussen was appointed liquidator of Zerren in June 2014 following an application by the Chief Commissioner of State Revenue to wind up the…


Was it Worrells duo’s ‘inadvertence’, or ASIC’s?

Worrells pair Nathan Deppeler and Nick Cooper have at last put their brief stint as unwittingly unregistered liquidators behind them and Federal Court Judge David O’Callaghan has disclosed in his recently published reasons the difficulties in hearing an application from the pair when they were technically unregistered. As Justice O’Callaghan pointed out in his opening, “Their registrations as liquidators expired earlier this year because, through inadvertence,…