John McInerney and Phillip Campbell-Wilson in their capacity as liquidators of St Gregory’s Armenian School Inc v Michael Ghougassian & Anor [2020] NSWSC 197

John McInerney and Phillip Campbell-Wilson in their capacity as liquidators of St Gregory’s Armenian School Inc v Michael Ghougassian & Anor [2020] NSWSC 197

A partial stay of enforcement on the judgment debt should be granted for amounts in excess of $240,000, conditioned on the first defendant taking all necessary steps to promptly assess outstanding costs owed by the liquidators to him. The application to set aside the underlying costs order does not have arguable merit on the grounds advanced; no substantive irregularity or lack of good faith in how the order was made. Further stay based on set-off is limited by the unquantified and presently unassessed nature of the applicant's costs entitlement.

Jurisdiction
Australia
Judgment Date
09 March 2020
Procedural Posture
Notice of Motion in Liquidation Proceedings / Application for Stay of Enforcement Pending Costs Assessment and Set Aside Application
Outcome
Partial stay of enforcement granted; no order as to costs on motion.
Legal Topics
['winding Up' 'stay of Execution' 'costs Orders' 'set Off' 'enforcement of Judgment']
['corporations' 'equity'] ['winding Up' 'stay of Execution' 'costs Orders' 'set Off' 'enforcement of Judgment']

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Procedural Posture

Notice of Motion in Liquidation Proceedings / Application for Stay of Enforcement Pending Costs Assessment and Set Aside Application

Legal Issues

  1. 1 ['Whether a stay of enforcement should be granted on a judgment debt in corporate liquidation proceedings' 'Whether costs orders can be set off in part against a judgment debt' 'Whether there are arguable grounds to set aside a prior costs order for irregularity or lack of good faith']

Ratio Decidendi

A partial stay of enforcement on the judgment debt should be granted for amounts in excess of $240,000, conditioned on the first defendant taking all necessary steps to promptly assess outstanding costs owed by the liquidators to him. The application to set aside the underlying costs order does not have arguable merit on the grounds advanced; no substantive irregularity or lack of good faith in how the order was made. Further stay based on set-off is limited by the unquantified and presently unassessed nature of the applicant's costs entitlement.

Court Disposition

Partial stay of enforcement granted; no order as to costs on motion.

Orders

  • ['Subject to the first defendant undertaking to the Court and to the plaintiffs to take all necessary steps to commence and pursue with due expedition the assessment of the costs order in his favour in proceedings 2013/386207, being order 6 made on 16 November 2015, order that execution on the judgment dated 27...