Re Greater West Insurance Brokers Pty Limited [2001] NSWSC 825

Re Greater West Insurance Brokers Pty Limited [2001] NSWSC 825

The words of s 28(4) of the Insurance (Agents and Brokers) Act 1984 (Cth) were not strong enough to displace the equitable principle that the reasonable costs and expenses of administering trust assets, including the liquidator's reasonable costs and expenses in this case, are payable from the trust moneys before distribution to insureds and insurers under the statutory scheme.

Jurisdiction
Australia
Judgment Date
06 September 2001
Procedural Posture
Application by a Liquidator for Directions Under S 511 of the Corporations Act 2001 (cth) / Orders Made After Hearing and Written Submissions
Outcome
Orders made; liquidator's reasonable costs and expenses have priority for payment out of the trust moneys before distribution to insureds and insurers.
Legal Topics
['winding Up' 'insurance Broker Trust Account' 'distribution of Insurance Broking Account Moneys on Insolvency' "priority of Liquidator's Costs and Expenses" 'trustee Indemnity and Administration Costs']
['corporations' 'insolvency' 'insurance' 'trusts and Equity'] ['winding Up' 'insurance Broker Trust Account' 'distribution of Insurance Broking Account Moneys on Insolvency' "priority of Liquidator's Costs and Expenses" 'trustee Indemnity and Administration Costs']

Case Brief

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Procedural Posture

Application by a Liquidator for Directions Under S 511 of the Corporations Act 2001 (cth) / Orders Made After Hearing and Written Submissions

Legal Issues

  1. 1 ["Whether the costs and expenses of the liquidation take priority over insurers' rights under s 28(4)(d) of the Insurance (Agents and Brokers) Act 1984 (Cth)." "How the moneys held in the Company's insurance broking account should be distributed."]

Ratio Decidendi

The words of s 28(4) of the Insurance (Agents and Brokers) Act 1984 (Cth) were not strong enough to displace the equitable principle that the reasonable costs and expenses of administering trust assets, including the liquidator's reasonable costs and expenses in this case, are payable from the trust moneys before distribution to insureds and insurers under the statutory scheme.

Court Disposition

Orders made; liquidator's reasonable costs and expenses have priority for payment out of the trust moneys before distribution to insureds and insurers.

Orders

  • ['The order of the Registrar of 17 April 2001 be set aside.' "It is determined that, subject to the liquidator's reasonable costs and expenses being paid out of the trust moneys of Greater West Insurance Brokers Pty Limited, the moneys held by the liquidator to be paid first to the insured persons referred to in the...