All Options Pty Ltd v Flightdeck Geelong Pty Ltd (No 2) [2019] FCA 1344

All Options Pty Ltd v Flightdeck Geelong Pty Ltd (No 2) [2019] FCA 1344

Upon reinstatement of Flightdeck Geelong Pty Ltd, the statutory fiction under s 601AH(5) of the Corporations Act 2001 (Cth) applies, allowing the Court to make orders for relief and costs against the company as if it was never deregistered. The quantum of damages and interest as proposed by the applicant was accepted as justified. The applicant was entitled to indemnity costs from the date stipulated by r 25.14(3) of the Federal Court Rules 2011 (Cth), having obtained a judgment more favourable than the offer to compromise. Lump sum costs will be determined by the procedure in the Costs Practice Note, with a timetable for submissions.

Parties
Applicant: All Options Pty Ltd; First Respondent: Flightdeck Geelong Pty Ltd; Second Respondent: Darren Mathews
Jurisdiction
Australia
Judgment Date
23 August 2019
Procedural Posture
Commercial/corporations Proceeding / Post Trial; Final Orders and Costs
Outcome
Orders for damages, interest, costs (including indemnity costs after specified date), and lump sum costs procedure, with joint and several liability.
Legal Topics
Reinstatement of Deregistered Company, Indemnity Costs, Lump Sum Costs, Joint and Several Liability, Effect of Company Deregistration/reinstatement
Practice and Procedure Corporations Costs Reinstatement of Deregistered Company Indemnity Costs Lump Sum Costs Joint and Several Liability Effect of Company Deregistration/reinstatement

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Parties

All Options Pty Ltd

Applicant

Flightdeck Geelong Pty Ltd

First Respondent

Darren Mathews

Second Respondent

Procedural Posture

Commercial/corporations Proceeding / Post Trial; Final Orders and Costs

Legal Issues

  1. 1 Whether orders for relief and costs should be made against a company that was deregistered at trial but subsequently reinstated
  2. 2 Whether the applicant is entitled to indemnity costs after serving an offer to compromise that was not accepted
  3. 3 Whether a lump sum costs order should be made and the appropriate procedure

Ratio Decidendi

Upon reinstatement of Flightdeck Geelong Pty Ltd, the statutory fiction under s 601AH(5) of the Corporations Act 2001 (Cth) applies, allowing the Court to make orders for relief and costs against the company as if it was never deregistered. The quantum of damages and interest as proposed by the applicant was accepted as justified. The applicant was entitled to indemnity costs from the date stipulated by r 25.14(3) of the Federal Court Rules 2011 (Cth), having obtained a judgment more favourable than the offer to compromise. Lump sum costs will be determined by the procedure in the Costs Practice Note, with a timetable for submissions.

Court Disposition

Orders for damages, interest, costs (including indemnity costs after specified date), and lump sum costs procedure, with joint and several liability.

Orders

  • The respondents to pay the applicant damages in the sum of $1,440,730, joint and several liability.
  • The respondents to pay the applicant interest in the sum of $227,783.36, joint and several liability.