Cook v Scott William Law trading as E. R. Henry Wherrett & Benjamin [2003] FCA 966

Cook v Scott William Law trading as E. R. Henry Wherrett & Benjamin [2003] FCA 966

The deed of settlement was approved because, compared with alternative proceedings under the Legal Profession Act 1993 (Tas) or claims against the respondents, it provided substantial returns and avoided delay, uncertainty, further expenditure and uncertainty as to investor priorities; the settlement was therefore reasonable.

Jurisdiction
Australia
Judgment Date
15 September 2003
Procedural Posture
Corporations Winding Up of Unregistered Managed Investment Scheme; Application for Court Approval of Deed of Settlement by Liquidator / Reasons for Judgment and Order Approving Deed of Settlement
Outcome
Application granted; deed of settlement approved.
Legal Topics
['court Approval of Liquidator Settlement' 'unregistered Managed Investment Scheme' 'mortgage Investments' 'alternative Recovery Proceedings']
['corporations Law' 'managed Investment Schemes' 'liquidation'] ['court Approval of Liquidator Settlement' 'unregistered Managed Investment Scheme' 'mortgage Investments' 'alternative Recovery Proceedings']

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Procedural Posture

Corporations Winding Up of Unregistered Managed Investment Scheme; Application for Court Approval of Deed of Settlement by Liquidator / Reasons for Judgment and Order Approving Deed of Settlement

Legal Issues

  1. 1 ['Whether the Court should approve under s 477 (2A) of the Corporations Act 2001 (Cth) the deed of settlement between the liquidator and the respondents.' 'Whether the proposed settlement was reasonable having regard to alternative courses of action, delay, uncertainty, recovery prospects and investor approval.']

Ratio Decidendi

The deed of settlement was approved because, compared with alternative proceedings under the Legal Profession Act 1993 (Tas) or claims against the respondents, it provided substantial returns and avoided delay, uncertainty, further expenditure and uncertainty as to investor priorities; the settlement was therefore reasonable.

Court Disposition

Application granted; deed of settlement approved.

Orders

  • ['The Court approves the deed of settlement dated 9 April 2003 between Paul John Cook, Scott William Law and Nigel Rutherford Henry being Annexure B to the Affidavit of Paul John Cook sworn 12 June 2003.']