Australian Securities and Investments Commission v Letten (No 27) [2020] FCA 891

Australian Securities and Investments Commission v Letten (No 27) [2020] FCA 891

The receiver's application for interim payment of remuneration and expenses is granted as the approach is consistent with previous claims, the safeguards remain adequate, and past Court determinations have typically allowed the bulk of claimed remuneration and all claimed expenses. Registrar will later review and fix final amounts, allowing for party and investor objections.

Parties
Applicant: Australian Securities and Investments Commission; First Respondent: Mark Ronald Letten; Second Respondent: LGH Holdings Limited (ACN 007 191 943); Third Respondent: 211 Wellington Road Pty Ltd (ACN 092 663 860); Fourth Respondent: Bluemist Holdings Pty Ltd (ACN 097 306 922); Fifth Respondent: Dellwood Holdings Pty Ltd (ACN 098 505 803); Sixth Respondent: Enmore Enterprises Pty Ltd (ACN 082 158 487); Seventh Respondent: Firbank Arch Pty Ltd (ACN 059 464 381); Eighth Respondent: Glenline Pty Ltd (ACN 098 532 364); Ninth Respondent: Gerling Holdings Pty Ltd (ACN 091 726 457); Tenth Respondent: LGH Administration Pty Ltd (ACN 007 165 069); Eleventh Respondent: LGH Finance Pty Ltd (ACN 078 859 248); Twelfth Respondent: Low Head Village Pty Ltd (ACN 091 731 958); Thirteenth Respondent: Nicholson Street Pty Ltd (ACN 069 104 089); Fourteenth Respondent: Holloway Crest Pty Ltd (ACN 091 731 967); Fifteenth Respondent: Rosebery Enterprises Pty Ltd (ACN 091 826 229); Sixteenth Respondent: Simms Investments Pty Ltd (ACN 093 504 511); Seventeenth Respondent: SY21 Retail Pty Ltd (ACN 107 874 564); Eighteenth Respondent: The Glen Centre Hawthorn Pty Ltd (ACN 089 906 543); Nineteenth Respondent: Castello Holdings Pty Ltd (ACN 088 204 175); Twentieth Respondent: Twinview Nominees Pty Ltd (ACN 097 307 278); Twenty First Respondent: Yarra Valley Golf Pty Ltd (ACN 066 632 479); Twenty Second Respondent: Adina Rise Pty Ltd (ACN 083 181 122); Twenty Third Respondent: Albright Investments Pty Ltd (ACN 088 204 166); Twenty Fourth Respondent: Ashfield Rise Pty Ltd (ACN 093 504 806); Twenty Fifth Respondent: Bradfield Corporation Pty Ltd (ACN 088 204 371); Twenty Sixth Respondent: Copeland Enterprises Pty Ltd (ACN 093 504 824); Twenty Seventh Respondent: Devlin Way Pty Ltd (ACN 088 264 813); Twenty Eighth Respondent: First Hazelwood Pty Ltd (ACN 093 505 303); Twenty Ninth Respondent: Glenbelle Pty Ltd (ACN 097 306 646); Thirtieth Respondent: Glenvale Way Pty Ltd (ACN 088 287 021); Thirty First Respondent: Greenview Lane Pty Ltd (ACN 093 505 312); Thirty Second Respondent: Hallmark Corporation Pty Ltd (ACN 093 505 312); Thirty Third Respondent: Moorleigh Holdings Pty Ltd (ACN 088 287 058); Thirty Fourth Respondent: Norton Ridge Pty Ltd (ACN 078 821 066); Thirty Fifth Respondent: Raleigh Glen Pty Ltd (ACN 088 204 380); Thirty Sixth Respondent: Redcrest Holdings Pty Ltd (ACN 100 836 486); Thirty Seventh Respondent: Suri Corporation Pty Ltd (ACN 093 505 321); Thirty Eighth Respondent: Sutton Rise Pty Ltd (ACN 088 204 399); Thirty Ninth Respondent: The Virtual MLMER Pty Ltd (ACN 065 374 665); Fortieth Respondent: Tivendale Pty Ltd (ACN 093 505 349); Forty First Respondent: Tulloch Downes Pty Ltd (ACN 078 895 048); Forty Second Respondent: Mainking Pty Ltd (ACN 100 790 485); Forty Third Respondent: Topglen Pty Ltd (ACN 096 857 564); Forty Fourth Respondent: Allblue Pty Ltd (ACN 100 836 388); Forty Fifth Respondent: Aranbay Pty Ltd (ACN 098 532 319); Forty Sixth Respondent: Melville Corporation Pty Ltd (ACN 091 911 045); Forty Seventh Respondent: Tilley Lane Pty Ltd (ACN 086 136 361); Forty Eighth Respondent: HPSC Pty Ltd (ACN 059 930 139); Forty Ninth Respondent: Jensdale Pty Ltd (ACN 098 367 974); Fiftieth Respondent: Oakdale Rise Pty Ltd (ACN 091 598 908); Fifty First Respondent: Maywood Investments Pty Ltd (ACN 091 599 218); Fifty Second Respondent: Acetrain Pty Ltd (ACN 100 820 282); Fifty Third Respondent: Sage Bay Pty Ltd (ACN 097 306 628); Fifty Fourth Respondent: Tobago Holdings Pty Ltd (ACN 093 504 520); Fifty Fifth Respondent: Wilhelmus Antonius Joannes Boerkamp; Fifty Sixth Respondent: Austpac Funds Management Limited; Fifty Seventh Respondent: Golden Heritage Golf Pty Ltd
Jurisdiction
Australia
Judgment Date
24 June 2020
Procedural Posture
Corporations Matter—receivership / Interlocutory Application for Remuneration Approval—order and Reasoning
Outcome
Interim payment approved; Registrar to review and fix final remuneration and expenses; confidentiality orders made.
Legal Topics
Receivership Remuneration, Interim Payment, Court Approval of Expenses, Registrar's Review of Remuneration
Corporations Receivership Remuneration Interim Payment Court Approval of Expenses Registrar's Review of Remuneration

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 2 Authorities cited 5 Party arguments 1 Amounts and remedies 8
Sign in to unlock

Parties

Australian Securities and Investments Commission

Applicant

Mark Ronald Letten

First Respondent

LGH Holdings Limited (ACN 007 191 943)

Second Respondent

211 Wellington Road Pty Ltd (ACN 092 663 860)

Third Respondent

Bluemist Holdings Pty Ltd (ACN 097 306 922)

Fourth Respondent

Dellwood Holdings Pty Ltd (ACN 098 505 803)

Fifth Respondent

Enmore Enterprises Pty Ltd (ACN 082 158 487)

Sixth Respondent

Firbank Arch Pty Ltd (ACN 059 464 381)

Seventh Respondent

Glenline Pty Ltd (ACN 098 532 364)

Eighth Respondent

Gerling Holdings Pty Ltd (ACN 091 726 457)

Ninth Respondent

LGH Administration Pty Ltd (ACN 007 165 069)

Tenth Respondent

LGH Finance Pty Ltd (ACN 078 859 248)

Eleventh Respondent

Low Head Village Pty Ltd (ACN 091 731 958)

Twelfth Respondent

Nicholson Street Pty Ltd (ACN 069 104 089)

Thirteenth Respondent

Holloway Crest Pty Ltd (ACN 091 731 967)

Fourteenth Respondent

Rosebery Enterprises Pty Ltd (ACN 091 826 229)

Fifteenth Respondent

Simms Investments Pty Ltd (ACN 093 504 511)

Sixteenth Respondent

SY21 Retail Pty Ltd (ACN 107 874 564)

Seventeenth Respondent

The Glen Centre Hawthorn Pty Ltd (ACN 089 906 543)

Eighteenth Respondent

Castello Holdings Pty Ltd (ACN 088 204 175)

Nineteenth Respondent

Twinview Nominees Pty Ltd (ACN 097 307 278)

Twentieth Respondent

Yarra Valley Golf Pty Ltd (ACN 066 632 479)

Twenty First Respondent

Adina Rise Pty Ltd (ACN 083 181 122)

Twenty Second Respondent

Albright Investments Pty Ltd (ACN 088 204 166)

Twenty Third Respondent

Ashfield Rise Pty Ltd (ACN 093 504 806)

Twenty Fourth Respondent

Bradfield Corporation Pty Ltd (ACN 088 204 371)

Twenty Fifth Respondent

Copeland Enterprises Pty Ltd (ACN 093 504 824)

Twenty Sixth Respondent

Devlin Way Pty Ltd (ACN 088 264 813)

Twenty Seventh Respondent

First Hazelwood Pty Ltd (ACN 093 505 303)

Twenty Eighth Respondent

Glenbelle Pty Ltd (ACN 097 306 646)

Twenty Ninth Respondent

Glenvale Way Pty Ltd (ACN 088 287 021)

Thirtieth Respondent

Greenview Lane Pty Ltd (ACN 093 505 312)

Thirty First Respondent

Hallmark Corporation Pty Ltd (ACN 093 505 312)

Thirty Second Respondent

Moorleigh Holdings Pty Ltd (ACN 088 287 058)

Thirty Third Respondent

Norton Ridge Pty Ltd (ACN 078 821 066)

Thirty Fourth Respondent

Raleigh Glen Pty Ltd (ACN 088 204 380)

Thirty Fifth Respondent

Redcrest Holdings Pty Ltd (ACN 100 836 486)

Thirty Sixth Respondent

Suri Corporation Pty Ltd (ACN 093 505 321)

Thirty Seventh Respondent

Sutton Rise Pty Ltd (ACN 088 204 399)

Thirty Eighth Respondent

The Virtual MLMER Pty Ltd (ACN 065 374 665)

Thirty Ninth Respondent

Tivendale Pty Ltd (ACN 093 505 349)

Fortieth Respondent

Tulloch Downes Pty Ltd (ACN 078 895 048)

Forty First Respondent

Mainking Pty Ltd (ACN 100 790 485)

Forty Second Respondent

Topglen Pty Ltd (ACN 096 857 564)

Forty Third Respondent

Allblue Pty Ltd (ACN 100 836 388)

Forty Fourth Respondent

Aranbay Pty Ltd (ACN 098 532 319)

Forty Fifth Respondent

Melville Corporation Pty Ltd (ACN 091 911 045)

Forty Sixth Respondent

Tilley Lane Pty Ltd (ACN 086 136 361)

Forty Seventh Respondent

HPSC Pty Ltd (ACN 059 930 139)

Forty Eighth Respondent

Jensdale Pty Ltd (ACN 098 367 974)

Forty Ninth Respondent

Oakdale Rise Pty Ltd (ACN 091 598 908)

Fiftieth Respondent

Maywood Investments Pty Ltd (ACN 091 599 218)

Fifty First Respondent

Acetrain Pty Ltd (ACN 100 820 282)

Fifty Second Respondent

Sage Bay Pty Ltd (ACN 097 306 628)

Fifty Third Respondent

Tobago Holdings Pty Ltd (ACN 093 504 520)

Fifty Fourth Respondent

Wilhelmus Antonius Joannes Boerkamp

Fifty Fifth Respondent

Austpac Funds Management Limited

Fifty Sixth Respondent

Golden Heritage Golf Pty Ltd

Fifty Seventh Respondent

Procedural Posture

Corporations Matter—receivership / Interlocutory Application for Remuneration Approval—order and Reasoning

Legal Issues

  1. 1 Should the Court approve payment on an interim basis of the receiver's remuneration, costs and expenses for the period 1 January 2016 to 31 December 2019 and certain related litigation/events?
  2. 2 Are the safeguards for interim remuneration adequate and consistent with previous practice?
  3. 3 How should the Registrar and the Court review and fix final remuneration and expenses, including potential objections by investors and other parties?

Ratio Decidendi

The receiver's application for interim payment of remuneration and expenses is granted as the approach is consistent with previous claims, the safeguards remain adequate, and past Court determinations have typically allowed the bulk of claimed remuneration and all claimed expenses. Registrar will later review and fix final amounts, allowing for party and investor objections.

Court Disposition

Interim payment approved; Registrar to review and fix final remuneration and expenses; confidentiality orders made.

Orders

  • Interim remuneration (85% of fees and 100% of expenses for relevant period) approved for payment to Receiver.
  • Receiver to treat liquidation costs as expenses of receivership.