Fletcher and Barnet, in the matter of Octaviar Limited (Receivers and Managers Appointed) (In Liq) and Octaviar Administration Pty Ltd (In Liq) [2011] FCA 132

Fletcher and Barnet, in the matter of Octaviar Limited (Receivers and Managers Appointed) (In Liq) and Octaviar Administration Pty Ltd (In Liq) [2011] FCA 132

On the evidence and authorities, it is in the interests of creditors of both OA and OCV for the liquidators to enter into the proposed litigation funding and indemnity agreement, and Court approval is therefore granted under s 477(2B). Orders restricting publication are necessary to prevent prejudice to the administration of justice within the meaning of s 50(1) of the Federal Court of Australia Act 1976 (Cth).

Jurisdiction
Australia
Judgment Date
23 February 2011
Procedural Posture
Corporate Insolvency / Liquidation / Application for Approval of Litigation Funding and Indemnity Agreement; Confidentiality Orders
Outcome
Application granted; orders made approving entry into funding agreement and for confidentiality directions.
Legal Topics
['litigation Funding Agreements' 'liquidator Powers' 'creditor Interests' 'confidentiality Orders']
['corporations Law' 'insolvency Law' 'civil Procedure'] ['litigation Funding Agreements' 'liquidator Powers' 'creditor Interests' 'confidentiality Orders']

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Procedural Posture

Corporate Insolvency / Liquidation / Application for Approval of Litigation Funding and Indemnity Agreement; Confidentiality Orders

Legal Issues

  1. 1 ['Whether liquidators should be approved under s 477(2B) Corporations Act 2001 (Cth) to enter into a litigation funding agreement where the funder is also in liquidation.' 'Whether confidentiality orders should be made under s 50 Federal Court of Australia Act 1976 (Cth) to restrict publication of evidence and transcript.']

Ratio Decidendi

On the evidence and authorities, it is in the interests of creditors of both OA and OCV for the liquidators to enter into the proposed litigation funding and indemnity agreement, and Court approval is therefore granted under s 477(2B). Orders restricting publication are necessary to prevent prejudice to the administration of justice within the meaning of s 50(1) of the Federal Court of Australia Act 1976 (Cth).

Court Disposition

Application granted; orders made approving entry into funding agreement and for confidentiality directions.

Orders

  • ['Pursuant to s 477(2B) Corporations Act 2001 (Cth), Court approves entry of the joint liquidators into the funding and indemnity agreement in the form exhibited.' 'Costs of the application be costs in the liquidation of the second and third plaintiffs.' 'Liberty to the plaintiffs to apply for confidentiality orders...