Huxtable, in the matter of Timeshare Resort Club Ltd ACN 009 085 358 (in liq) [2010] FCA 673

Huxtable, in the matter of Timeshare Resort Club Ltd ACN 009 085 358 (in liq) [2010] FCA 673

The Court could determine only the administrator's remuneration, strictly defined, under s 449E for work performed during the administration from 14 February 2009 to 9 April 2009. Legal fees incurred with summerslegal were disbursements, not remuneration, and could not be determined or reviewed in this application under s 449E. Work performed before appointment was not work of the administration for s 449E purposes. Section 447A could not properly be used to rewrite s 447E so as to give the administrator a general standing to have his own legal disbursements reviewed without any allegation of prejudicial conduct. The proper course was to refer the administrator's remuneration for the...

Jurisdiction
Australia
Judgment Date
25 June 2010
Procedural Posture
Application for Determination of Administrator's Remuneration Pursuant to S 449 E(1)(c) of the Corporations Act 2001 (cth) / Final Orders and Reasons for Judgment
Outcome
Application allowed in part; remuneration for the administration period referred to a registrar for assessment; proposed orders for review of summerslegal's legal fees as disbursements refused.
Legal Topics
["administrator's Remuneration" 'disbursements' 'legal Fees Incurred by Administrator' 'assessment by Registrar' 'voluntary Administration' 'section 447 a and S 447 E Applications']
['corporations' 'insolvency'] ["administrator's Remuneration" 'disbursements' 'legal Fees Incurred by Administrator' 'assessment by Registrar' 'voluntary Administration' 'section 447 a and S 447 E Applications']

Case Brief

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Procedural Posture

Application for Determination of Administrator's Remuneration Pursuant to S 449 E(1)(c) of the Corporations Act 2001 (cth) / Final Orders and Reasons for Judgment

Legal Issues

  1. 1 ['Whether legal fees incurred with summerslegal could be treated as remuneration of the administrator capable of determination under s 449E of the Corporations Act 2001 (Cth).' "Whether work performed before the administrator's appointment on 14 February 2009 could be included in remuneration determined under s 449E." 'Whether s 447A could be used so that s 447E operated as if the administrator had standing to apply for review of legal fees as disbursements.' "Whether the administrator's remuneration for work during the administration should be referred to a registrar for assessment."]

Ratio Decidendi

The Court could determine only the administrator's remuneration, strictly defined, under s 449E for work performed during the administration from 14 February 2009 to 9 April 2009. Legal fees incurred with summerslegal were disbursements, not remuneration, and could not be determined or reviewed in this application under s 449E. Work performed before appointment was not work of the administration for s 449E purposes. Section 447A could not properly be used to rewrite s 447E so as to give the administrator a general standing to have his own legal disbursements reviewed without any allegation of prejudicial conduct. The proper course was to refer the administrator's remuneration for the...

Court Disposition

Application allowed in part; remuneration for the administration period referred to a registrar for assessment; proposed orders for review of summerslegal's legal fees as disbursements refused.

Orders

  • ['Pursuant to O 13, r 2(1) of the Federal Court (Corporations) Rules 2000 (Cth) the plaintiff have leave to amend the originating process in accordance with the minutes of amended originating process dated 20 May 2010.' 'Pursuant to s 449E(1)(c) of the Corporations Act 2001 (Cth), the plaintiff be entitled to...