Saker, in the matter of Great Southern Managers Australia Ltd (Receivers and Managers Appointed) (in liquidation) (No 3) [2011] FCA 1192

Saker, in the matter of Great Southern Managers Australia Ltd (Receivers and Managers Appointed) (in liquidation) (No 3) [2011] FCA 1192

The Court declined to answer the plaintiffs' s 511 question about the management fees because, although earlier reasoning supported GSMA's entitlement to appropriate accrued fees, PSL asserted competing legal and equitable claims of set-off and scheme property. In the absence of sufficient pleadings, evidence and detailed argument identifying the damages claim and competing entitlements, it was inappropriate on a directions application to determine those rights. The balance of the summons was dismissed and the plaintiffs' costs were made costs of the liquidation.

Jurisdiction
Australia
Judgment Date
21 October 2011
Procedural Posture
Application Under S 511 of the Corporations Act 2001 (cth) for Determination of Questions or Directions in a Liquidation / Determined on the Papers; Balance of Summons Dismissed
Outcome
The Court declined to answer the remaining question and dismissed the balance of the plaintiffs' summons.
Legal Topics
['responsible Entity of Managed Investment Scheme' 'management Fees' 'scheme Property' 'liquidator Directions Under S 511' 'equitable Set Off' 'statutory Trust Over Scheme Property']
['corporations' 'insolvency and Liquidation' 'managed Investment Schemes'] ['responsible Entity of Managed Investment Scheme' 'management Fees' 'scheme Property' 'liquidator Directions Under S 511' 'equitable Set Off' 'statutory Trust Over Scheme Property']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application Under S 511 of the Corporations Act 2001 (cth) for Determination of Questions or Directions in a Liquidation / Determined on the Papers; Balance of Summons Dismissed

Legal Issues

  1. 1 ['Whether management fees arguably accrued to Great Southern Managers Australia Ltd should be treated as GSMA property by the liquidators or released to Primary Securities Ltd.' 'Whether investor/growers had a set-off against management fees and indemnity claimed by GSMA based on alleged failure to perform management services.' 'Whether it was just and beneficial under s 511(2) of the Corporations Act 2001 (Cth) to answer the question raised by the plaintiffs in the absence of proper pleadings, evidence and argument.']

Ratio Decidendi

The Court declined to answer the plaintiffs' s 511 question about the management fees because, although earlier reasoning supported GSMA's entitlement to appropriate accrued fees, PSL asserted competing legal and equitable claims of set-off and scheme property. In the absence of sufficient pleadings, evidence and detailed argument identifying the damages claim and competing entitlements, it was inappropriate on a directions application to determine those rights. The balance of the summons was dismissed and the plaintiffs' costs were made costs of the liquidation.

Court Disposition

The Court declined to answer the remaining question and dismissed the balance of the plaintiffs' summons.

Orders

  • ["The balance of the plaintiffs' summons be dismissed." "The plaintiffs' costs be costs of the liquidation."]