Sprowles, in the matter of Cornerstone Investment Aust Pty Ltd (in liq) [2022] FCA 1008

Sprowles, in the matter of Cornerstone Investment Aust Pty Ltd (in liq) [2022] FCA 1008

The Court was satisfied, having regard to Mr Hogan's affidavit and the Leigh factors, that approval should be given for the plaintiffs to enter into the funding agreement. To the extent the funding agreement provided an advantage to the Department and, by extension, the Commission, leave should be granted under s 80-55(5) having regard to the circumstances attending, and the need for, the funding agreement. The commercially sensitive information in the filed material justified limiting access pending conclusion of the Supreme Court proceedings and any appeal.

Jurisdiction
Australia
Judgment Date
29 August 2022
Procedural Posture
Application by Liquidators for Approval to Enter Into a Litigation Funding Agreement and Related Leave and Non Publication Orders / Interlocutory Process Dated 26 August 2022; Orders Made 29 August 2022
Outcome
Orders made granting confidentiality relief, joining Cornerstone as second plaintiff, approving the funding agreement nunc pro tunc, granting leave under s 80-55(5)(b) to the extent required, and making costs costs in the liquidation.
Legal Topics
["liquidators' Powers" 'litigation Funding Agreement' 'committee of Inspection' 'conflict of Interest' 'non Publication Order']
['corporations' 'corporate Insolvency' 'civil Procedure'] ["liquidators' Powers" 'litigation Funding Agreement' 'committee of Inspection' 'conflict of Interest' 'non Publication Order']

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Procedural Posture

Application by Liquidators for Approval to Enter Into a Litigation Funding Agreement and Related Leave and Non Publication Orders / Interlocutory Process Dated 26 August 2022; Orders Made 29 August 2022

Legal Issues

  1. 1 ['Whether approval should be given under ss 477(2B) and 506(1A) of the Corporations Act 2001 (Cth) for the liquidators to enter into the funding agreement.' 'Whether leave should be granted under s 80-55(5) of the Insolvency Practice Schedule (Corporations) for the committee of inspection to derive any profit or advantage by virtue of Cornerstone entering into the funding agreement.' 'Whether an order should be made under s 37AF(1)(b) of the Federal Court of Australia Act 1976 (Cth) limiting access to documents on the Court file.']

Ratio Decidendi

The Court was satisfied, having regard to Mr Hogan's affidavit and the Leigh factors, that approval should be given for the plaintiffs to enter into the funding agreement. To the extent the funding agreement provided an advantage to the Department and, by extension, the Commission, leave should be granted under s 80-55(5) having regard to the circumstances attending, and the need for, the funding agreement. The commercially sensitive information in the filed material justified limiting access pending conclusion of the Supreme Court proceedings and any appeal.

Court Disposition

Orders made granting confidentiality relief, joining Cornerstone as second plaintiff, approving the funding agreement nunc pro tunc, granting leave under s 80-55(5)(b) to the extent required, and making costs costs in the liquidation.

Orders

  • ['Pursuant to s 37AF(1)(b) of the Federal Court of Australia Act 1976 (Cth), access to specified documents on the Court file not be granted, and the transcript not otherwise be disclosed or provided, except as ordered by the Court, until proceeding no 2021/150771 in the Supreme Court of New South Wales, including...