Elkerton (Liquidator) v IBN Global Pty Ltd, in the matter of Ji Woo International Education Centre Pty Ltd (in liq) [2019] FCA 2098

Elkerton (Liquidator) v IBN Global Pty Ltd, in the matter of Ji Woo International Education Centre Pty Ltd (in liq) [2019] FCA 2098

Approval was granted because the funding agreement allows the liquidator to pursue valuable and meritorious claims, on reasonable terms, with no indication of impropriety or lack of good faith, and confidentiality was warranted to protect the commercial sensitivity of certain documents.

Parties
First Plaintiff: Ji Woo International Education Centre Pty Limited (in liquidation) (ACN 105 435 201); Second Plaintiff: Anthony Elkerton (in his capacity as liquidator of Ji Woo International Education Centre Pty Limited (in liquidation) (ACN 105 435 201)); First Defendant: IBN Global Pty Ltd (ACN 166 098 157); Second Defendant: Bo Hyun Lee (aka Scott Lee); Third Defendant: Chihoon Choi; Fourth Defendant: Hye Young Han
Jurisdiction
Australia
Judgment Date
02 December 2019
Procedural Posture
Corporations – Ex Parte Application by Liquidator for Approval of Agreement / Approval Application Determination
Outcome
Application granted
Legal Topics
Liquidator's Powers, Litigation Funding Agreement, Approval Under S 477(2 B) Corporations Act, Confidentiality Orders
Corporations Law Commercial Law Insolvency Law Liquidator's Powers Litigation Funding Agreement Approval Under S 477(2 B) Corporations Act Confidentiality Orders

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Parties

Ji Woo International Education Centre Pty Limited (in liquidation) (ACN 105 435 201)

First Plaintiff

Anthony Elkerton (in his capacity as liquidator of Ji Woo International Education Centre Pty Limited (in liquidation) (ACN 105 435 201))

Second Plaintiff

IBN Global Pty Ltd (ACN 166 098 157)

First Defendant

Bo Hyun Lee (aka Scott Lee)

Second Defendant

Chihoon Choi

Third Defendant

Hye Young Han

Fourth Defendant

Procedural Posture

Corporations – Ex Parte Application by Liquidator for Approval of Agreement / Approval Application Determination

Legal Issues

  1. 1 Should approval be given under s 477(2B) of the Corporations Act 2001 (Cth) for the liquidator to enter into a litigation funding agreement and a retainer for legal representation?
  2. 2 Should confidentiality orders be made under s 37AF of the Federal Court of Australia Act 1976 (Cth)?

Ratio Decidendi

Approval was granted because the funding agreement allows the liquidator to pursue valuable and meritorious claims, on reasonable terms, with no indication of impropriety or lack of good faith, and confidentiality was warranted to protect the commercial sensitivity of certain documents.

Court Disposition

Application granted

Orders

  • Second plaintiff authorised to enter into the funding agreement as Confidential Exhibit A under s 477(2B) Corporations Act 2001 (Cth).
  • Second plaintiff authorised to enter into a retainer with Neville Hourn & Borg Legal Pty Ltd as legal representatives for the plaintiffs upon terms of the funding agreement.