In the matter of Gerard Cassegrain & Co Pty Ltd (in liquidation) [2013] NSWSC 1293

In the matter of Gerard Cassegrain & Co Pty Ltd (in liquidation) [2013] NSWSC 1293

The Court found the liquidator's decision to enter the litigation funding agreement was a proper exercise of power, involving no lack of good faith or error of law or principle, and approval was justified. The proposed agreement was reasonable and in the creditors' interests, and a direction under s 479(3) was appropriate in the circumstances.

Parties
First Plaintiff, Liquidator of Gerard Cassegrain & Co Pty Limited (in Liquidation): Christopher Mel Chamberlain; Second Plaintiff, Company in Liquidation: Gerard Cassegrain & Co Pty Limited (in liquidation)
Jurisdiction
Australia
Judgment Date
16 April 2013
Procedural Posture
Corporations Proceeding, Interlocutory Application for Approval of Funding Agreement / Interlocutory Application, Orders Sought Under S 477(2 B) and S 479(3) Corporations Act 2001 (cth)
Outcome
Approval granted for entry into funding agreement; direction given protecting liquidator; confidentiality orders made.
Legal Topics
Winding Up, Litigation Funding, Liquidator's Powers, Creditor Interests, Court Directions to Liquidator
Corporations Law Equity Winding Up Litigation Funding Liquidator's Powers Creditor Interests Court Directions to Liquidator

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Parties

Christopher Mel Chamberlain

First Plaintiff, Liquidator of Gerard Cassegrain & Co Pty Limited (in Liquidation)

Gerard Cassegrain & Co Pty Limited (in liquidation)

Second Plaintiff, Company in Liquidation

Procedural Posture

Corporations Proceeding, Interlocutory Application for Approval of Funding Agreement / Interlocutory Application, Orders Sought Under S 477(2 B) and S 479(3) Corporations Act 2001 (cth)

Legal Issues

  1. 1 Whether approval should be granted under s 477(2B) Corporations Act 2001 (Cth) for entry into a litigation funding agreement by the liquidator
  2. 2 Whether a direction under s 479(3) Corporations Act 2001 (Cth) should be made to justify the liquidator entering into the funding agreement and protect the liquidator from future claims

Ratio Decidendi

The Court found the liquidator's decision to enter the litigation funding agreement was a proper exercise of power, involving no lack of good faith or error of law or principle, and approval was justified. The proposed agreement was reasonable and in the creditors' interests, and a direction under s 479(3) was appropriate in the circumstances.

Court Disposition

Approval granted for entry into funding agreement; direction given protecting liquidator; confidentiality orders made.

Orders

  • Approval granted under s 477(2B) Corporations Act 2001 (Cth) for entry into funding agreement.
  • Direction given under s 479(3) Corporations Act 2001 (Cth) justifying the liquidator's decision.