Basecove Pty Ltd v Dolores Lavin Management Pty Ltd & ors [2009] NSWSC 1315

Basecove Pty Ltd v Dolores Lavin Management Pty Ltd & ors [2009] NSWSC 1315

Given the ongoing deadlock, the entities' apparent insolvency, lack of confidence in financial recovery, and the risk to personal assets, it is just and equitable to end the relationship by appointment of receivers and managers rather than a new trustee.

Parties
Plaintiff: Basecove Pty Ltd; First Defendant: Dolores Lavin Management Pty Ltd; Second Defendant: Luxe Studios Pty Ltd; Third Defendant: Luxe Productions Pty Ltd
Jurisdiction
Australia
Judgment Date
10 November 2009
Procedural Posture
Application for Appointment of Receivers and Managers / Appointment of New Trustee / Judgment
Outcome
Receiver and manager appointed to trustee company. Costs of both parties to be paid out of the assets of the second and third defendants. Liberty to apply reserved.
Legal Topics
Appointment of Receiver and Manager, Deadlock in Trusts, Just and Equitable Winding Up, Appointment of New Trustee
Equity Trusts Appointment of Receiver and Manager Deadlock in Trusts Just and Equitable Winding Up Appointment of New Trustee

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Parties

Basecove Pty Ltd

Plaintiff

Dolores Lavin Management Pty Ltd

First Defendant

Luxe Studios Pty Ltd

Second Defendant

Luxe Productions Pty Ltd

Third Defendant

Procedural Posture

Application for Appointment of Receivers and Managers / Appointment of New Trustee / Judgment

Legal Issues

  1. 1 Whether a receiver and manager should be appointed to the trustee company
  2. 2 Whether a new trustee should be appointed to the trust
  3. 3 Which course better resolves deadlock between the parties and protects their respective interests

Ratio Decidendi

Given the ongoing deadlock, the entities' apparent insolvency, lack of confidence in financial recovery, and the risk to personal assets, it is just and equitable to end the relationship by appointment of receivers and managers rather than a new trustee.

Court Disposition

Receiver and manager appointed to trustee company. Costs of both parties to be paid out of the assets of the second and third defendants. Liberty to apply reserved.

Orders

  • Receivers and managers appointed in accordance with paragraphs 1, 2, 3, 4, 5 and 8 of the summons.
  • Costs of both parties to be paid out of the assets of the second and third defendants.