Kingsheath Club of the Clubs Limited (In liq) [2003] FCA 1589

Kingsheath Club of the Clubs Limited (In liq) [2003] FCA 1589

The opposing parties were entitled to their costs of the earlier access application because it had been resisted on substantive issues. Indemnity costs for the substantive proceeding were refused because, although the proceeding had substantial difficulties and might be said with hindsight to have had no chance of success, there was no disclosed conduct by the liquidator amounting to an ulterior motive, wilful disregard of facts or established law, or other circumstance warranting indemnity costs; the liquidator was acting for creditors rather than personally, and the existence of an indemnity from the funding entity was not an appropriate matter for determining whether indemnity costs...

Jurisdiction
Australia
Judgment Date
19 December 2003
Procedural Posture
Costs Application in a Liquidation Proceeding / After the Plaintiff Liquidator Sought Dismissal of the Application Following Reservation of Judgment
Outcome
Application dismissed; opposing parties awarded costs on a party and party basis, payable forthwith; indemnity costs refused.
Legal Topics
['indemnity Costs' 'party and Party Costs' 'costs of Interlocutory Application for Access to Documents' 'liquidator Seeking Court Approval of Agreement' 'costs Payable Forthwith']
['costs' 'corporations and Insolvency'] ['indemnity Costs' 'party and Party Costs' 'costs of Interlocutory Application for Access to Documents' 'liquidator Seeking Court Approval of Agreement' 'costs Payable Forthwith']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Costs Application in a Liquidation Proceeding / After the Plaintiff Liquidator Sought Dismissal of the Application Following Reservation of Judgment

Legal Issues

  1. 1 ['Whether the opposing parties should have their costs of the interlocutory application for access to relevant documents.' 'Whether the costs of the substantive proceeding should be awarded on an indemnity basis because the liquidator should have known that he had no chance of success.' 'Whether the costs should be ordered to be paid forthwith pursuant to O 62 r 3(2).']

Ratio Decidendi

The opposing parties were entitled to their costs of the earlier access application because it had been resisted on substantive issues. Indemnity costs for the substantive proceeding were refused because, although the proceeding had substantial difficulties and might be said with hindsight to have had no chance of success, there was no disclosed conduct by the liquidator amounting to an ulterior motive, wilful disregard of facts or established law, or other circumstance warranting indemnity costs; the liquidator was acting for creditors rather than personally, and the existence of an indemnity from the funding entity was not an appropriate matter for determining whether indemnity costs...

Court Disposition

Application dismissed; opposing parties awarded costs on a party and party basis, payable forthwith; indemnity costs refused.

Orders

  • ['The application be dismissed.' 'The plaintiff pay the costs of the King Network Group Pty Ltd, Arts Investment Pty Ltd, Harry Stamoulis and Salvatore Mancuso, of and incidental to the application, the application for access to documents and any reserved costs.' 'Pursuant to O 62 r 3(2) such costs be paid forthwith.']