Alpine Beef Pty Ltd (in liq), in the matter of Alpine Beef Pty Ltd (in liq) [2011] FCA 748

Alpine Beef Pty Ltd (in liq), in the matter of Alpine Beef Pty Ltd (in liq) [2011] FCA 748

The Court approved the Funding Agreement retrospectively because the liquidator had a coherent basis for the proposed claim, the litigation funding agreement appeared conventional, it did not give the funding creditors any share of recoveries beyond reimbursement of litigation funding and ordinary creditor entitlements, and there was no identified oppression, undue benefit, lack of good faith, or ground for doubting the prudence of the proposed proceedings. Confidentiality was necessary and appropriate to avoid prejudice to the administration of justice.

Jurisdiction
Australia
Judgment Date
30 June 2011
Procedural Posture
Interlocutory Application Pursuant to S 477(2 B) of the Corporations Act 2001 (cth) for Retrospective Approval of a Litigation Funding Agreement / Interlocutory Application Heard and Determined
Outcome
Interlocutory application granted; Funding Agreement approved, confidentiality ordered, and declaration made under s 1322(4)(a).
Legal Topics
['liquidator Powers' 'retrospective Approval of Funding Agreement' 'confidentiality of Litigation Funding Agreement' 'long Term Agreements Under S 477(2 B)' 'validation Under S 1322(4)(a)']
['corporations' 'insolvency' 'litigation Funding'] ['liquidator Powers' 'retrospective Approval of Funding Agreement' 'confidentiality of Litigation Funding Agreement' 'long Term Agreements Under S 477(2 B)' 'validation Under S 1322(4)(a)']

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Procedural Posture

Interlocutory Application Pursuant to S 477(2 B) of the Corporations Act 2001 (cth) for Retrospective Approval of a Litigation Funding Agreement / Interlocutory Application Heard and Determined

Legal Issues

  1. 1 ['Whether the Court should retrospectively approve the Funding Agreement under s 477(2B) of the Corporations Act 2001 (Cth).' 'Whether the affidavit annexing the Funding Agreement and the Funding Agreement should remain confidential.' "Whether the Funding Agreement should be declared not invalid under s 1322(4)(a) by reason of the liquidator's failure to obtain approval before entering it."]

Ratio Decidendi

The Court approved the Funding Agreement retrospectively because the liquidator had a coherent basis for the proposed claim, the litigation funding agreement appeared conventional, it did not give the funding creditors any share of recoveries beyond reimbursement of litigation funding and ordinary creditor entitlements, and there was no identified oppression, undue benefit, lack of good faith, or ground for doubting the prudence of the proposed proceedings. Confidentiality was necessary and appropriate to avoid prejudice to the administration of justice.

Court Disposition

Interlocutory application granted; Funding Agreement approved, confidentiality ordered, and declaration made under s 1322(4)(a).

Orders

  • ['The Funding Agreement entered into between the first applicant and the second applicant, on the one part, and Trycill Pty Ltd (ACN 003 304 845), Peter William Ullrich and Sari Rosalind Ullrich, on the other part, pursuant to section 477(2B) of the Corporations Act 2001 (Cth) be approved.' "The affidavit of...