Pleash, in the matter of Equititrust Limited (in Liquidation) (Receiver Appointed) [2019] FCA 1063

Pleash, in the matter of Equititrust Limited (in Liquidation) (Receiver Appointed) [2019] FCA 1063

The proposed settlement deed and its apportionment were within the range of fair and reasonable outcomes. The plaintiffs were justified and acted reasonably in entering into, and proposing to give effect to, the settlement under the relevant provisions of the Corporations Act 2001 (Cth) and the Trusts Act 1973 (Qld), bearing in mind the Court's protective function and the weight of counsel's advice given the complexity and risks of the proceedings.

Jurisdiction
Australia
Judgment Date
28 June 2019
Procedural Posture
Application for Judicial Advice and Settlement Approval / Final Orders and Reasons for Judgment
Outcome
Orders made approving the settlement, declaring plaintiffs justified in their conduct, and granting consequential relief.
Legal Topics
['judicial Advice' 'approval of Settlement' 'liquidation' 'trustee Duties']
['corporations Law' 'trusts and Equity'] ['judicial Advice' 'approval of Settlement' 'liquidation' 'trustee Duties']

Case Brief

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Procedural Posture

Application for Judicial Advice and Settlement Approval / Final Orders and Reasons for Judgment

Legal Issues

  1. 1 ['Whether the plaintiffs were justified and acted reasonably in entering into and implementing the settlement deed' 'Whether approval of the settlement should be granted under Corporations Act 2001 (Cth) s 477(2B) and Sch 2 s 90-15' 'Whether the apportionment of the settlement sum between proceedings is fair and reasonable']

Ratio Decidendi

The proposed settlement deed and its apportionment were within the range of fair and reasonable outcomes. The plaintiffs were justified and acted reasonably in entering into, and proposing to give effect to, the settlement under the relevant provisions of the Corporations Act 2001 (Cth) and the Trusts Act 1973 (Qld), bearing in mind the Court's protective function and the weight of counsel's advice given the complexity and risks of the proceedings.

Court Disposition

Orders made approving the settlement, declaring plaintiffs justified in their conduct, and granting consequential relief.

Orders

  • ['Plaintiffs granted leave to file Amended Originating Process.' 'Service by publication and online deemed effective for creditors and unitholders.' 'Court approved entry into settlement deed under Corporations Act 2001 (Cth) s 477(2B).' 'Court declared plaintiffs justified and acting reasonably in entering and...