Carter, in the matter of the Spectrum Fire Group [2012] FCA 1202

Carter, in the matter of the Spectrum Fire Group [2012] FCA 1202

The court granted leave under s 477(2B) as the proposed litigation funding deed and retainer are within the range of commercially reasonable agreements for liquidators, having regard to the interests of creditors and commercial realities.

Parties
Plaintiffs: Philip Patrick Carter, Christopher Clarke Hill, Grant Dene Sparks, Daniel Matthew Bryant and Stephen Graham Longley (in their capacity as joint and several liquidators of the companies in the Spectrum Fire Group named in the Schedule)
Jurisdiction
Australia
Judgment Date
31 August 2012
Procedural Posture
Application Under Corporations Act 2001 (cth) S 477(2 B) / Hearing and Judgment on Liquidators' Application for Approval of Litigation Funding and Retainer
Outcome
Leave granted to enter litigation funding and retainer agreements; confidentiality orders made; costs to be costs in the winding up.
Legal Topics
Liquidators' Powers, Litigation Funding, Approval of Agreements by Court, Preference Claims
Insolvency Corporations Law Liquidators' Powers Litigation Funding Approval of Agreements by Court Preference Claims

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Parties

Philip Patrick Carter, Christopher Clarke Hill, Grant Dene Sparks, Daniel Matthew Bryant and Stephen Graham Longley (in their capacity as joint and several liquidators of the companies in the Spectrum Fire Group named in the Schedule)

Plaintiffs

Procedural Posture

Application Under Corporations Act 2001 (cth) S 477(2 B) / Hearing and Judgment on Liquidators' Application for Approval of Litigation Funding and Retainer

Legal Issues

  1. 1 Whether leave should be granted under s 477(2B) of the Corporations Act 2001 (Cth) to enter into litigation funding agreement and retainer of solicitors
  2. 2 Whether the litigation funding deed terms are appropriate and within the range commonly accepted for such agreements

Ratio Decidendi

The court granted leave under s 477(2B) as the proposed litigation funding deed and retainer are within the range of commercially reasonable agreements for liquidators, having regard to the interests of creditors and commercial realities.

Court Disposition

Leave granted to enter litigation funding and retainer agreements; confidentiality orders made; costs to be costs in the winding up.

Orders

  • Leave granted under s 477(2B) Corporations Act 2001 (Cth) to enter into the litigation funding deed and engage Jones Day as solicitors.
  • Annexures PPC4 and PPC5 to remain confidential and filed under seal.