In the matter of Michelle Esther Harpur [2011] NSWSC 389

In the matter of Michelle Esther Harpur [2011] NSWSC 389

The order should be varied because no professional negligence or other claim had been made or indicated since dissolution, making such claims highly unlikely; the amounts to be distributed related to the receivership and took priority over any contingent claim; retaining the balance of the $500,000 had limited utility because the Australian partners remained liable for any contingent claim; and the existing order prevented the receivership being brought to an end, risking dissipation of remaining money over time.

Jurisdiction
Australia
Judgment Date
13 April 2011
Procedural Posture
Partnership Receivership and Winding Down / Receiver's Application for Further Variation of Order 4 L Concerning Retained Funds
Outcome
Orders sought by the receiver made.
Legal Topics
['dissolution of Partnership' 'winding Down Partnership Affairs' "receiver's Fees and Costs" 'retention of Funds for Contingent Liabilities' 'payment of Surplus Into Court']
['partnership' 'equity' 'receivership'] ['dissolution of Partnership' 'winding Down Partnership Affairs' "receiver's Fees and Costs" 'retention of Funds for Contingent Liabilities' 'payment of Surplus Into Court']

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Procedural Posture

Partnership Receivership and Winding Down / Receiver's Application for Further Variation of Order 4 L Concerning Retained Funds

Legal Issues

  1. 1 ['Whether order 4L should be varied to remove the requirement that the receiver retain funds of $500,000 for contingent liabilities of the dissolved partnership.' 'Whether the receiver should be permitted to pay receivership costs and outstanding fees and pay any balance into court.']

Ratio Decidendi

The order should be varied because no professional negligence or other claim had been made or indicated since dissolution, making such claims highly unlikely; the amounts to be distributed related to the receivership and took priority over any contingent claim; retaining the balance of the $500,000 had limited utility because the Australian partners remained liable for any contingent claim; and the existing order prevented the receivership being brought to an end, risking dissipation of remaining money over time.

Court Disposition

Orders sought by the receiver made.

Orders

  • ['Order 4L varied to delete the requirement that any amount of the $500,000 be retained.' 'Receiver permitted to pay his own costs and outstanding fees of the receivership and pay any balance into court.']