In re MF Global Australia Ltd (in liq) (No 2) [2012] NSWSC 1426

In re MF Global Australia Ltd (in liq) (No 2) [2012] NSWSC 1426

The costs of the plaintiffs, client representatives (including PHRS), Deutsche Bank AG, and MF Global Singapore Pte Limited are to be paid from the client segregated accounts and Recoveries pro rata to the value of client claims as at 31 October 2011. The Liquidators are justified in paying their remuneration and expenses in relation to Recoveries from the CSAs and Recoveries of the relevant product line. No reallocation of representative parties' costs among product pools is warranted given overlap in issues. Discretionary orders for payment from House Funds only arise if House Funds prove insufficient, determined later if necessary.

Jurisdiction
Australia
Judgment Date
23 November 2012
Procedural Posture
Corporations Winding Up / Application for Directions / Post Judgment Costs Determination, Equity Division
Outcome
Costs orders and directions for payment among CSAs, Recoveries, and House Funds; directions for short minutes of order within 14 days; leave for relist if needed for liquidator remuneration issue.
Legal Topics
['liquidator Remuneration' 'costs of Proceedings' 'statutory Trusts' 'trustee Indemnity' 'pooling of Accounts' 'distribution of Trust Assets']
['corporations' 'equity' 'trusts' 'insolvency'] ['liquidator Remuneration' 'costs of Proceedings' 'statutory Trusts' 'trustee Indemnity' 'pooling of Accounts' 'distribution of Trust Assets']

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Procedural Posture

Corporations Winding Up / Application for Directions / Post Judgment Costs Determination, Equity Division

Legal Issues

  1. 1 ["Source of payment for liquidators' remuneration and expenses" 'Source of payment for legal costs of parties including client representatives and unsecured creditor representatives' 'Allocation of costs against product pools' 'Whether statutory trust principles or general trust law applies to costs' 'Entitlement of Deutsche Bank AG and MF Global Singapore Pte Limited to costs' 'Apportionment of costs among CSAs, Recoveries, and House Funds']

Ratio Decidendi

The costs of the plaintiffs, client representatives (including PHRS), Deutsche Bank AG, and MF Global Singapore Pte Limited are to be paid from the client segregated accounts and Recoveries pro rata to the value of client claims as at 31 October 2011. The Liquidators are justified in paying their remuneration and expenses in relation to Recoveries from the CSAs and Recoveries of the relevant product line. No reallocation of representative parties' costs among product pools is warranted given overlap in issues. Discretionary orders for payment from House Funds only arise if House Funds prove insufficient, determined later if necessary.

Court Disposition

Costs orders and directions for payment among CSAs, Recoveries, and House Funds; directions for short minutes of order within 14 days; leave for relist if needed for liquidator remuneration issue.

Orders

  • ["Plaintiffs' costs to be paid from Product Pools pro rata to estimated client claims as at 31 October 2011." "Client representatives' costs to continue in accordance with previous orders, from CSAs and Recoveries." "PHRS' costs to be paid as above, from CSAs and Recoveries." 'MFGS entitled to its costs of MFGS...