BounceLED Pty Ltd v Clear Skies Corp Pty Ltd (in liq) (No 2) [2023] NSWSC 810

BounceLED Pty Ltd v Clear Skies Corp Pty Ltd (in liq) (No 2) [2023] NSWSC 810

The plaintiff, having succeeded on appeal by making good the good faith defence under s 588FG(2) of the Corporations Act and having offered a walk-away compromise at significant cost, is entitled to its costs in both courts: on an ordinary basis up to and including 13 July 2021 in the Local Court and indemnity...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
11 July 2023
Procedural Posture
Appeal (from Local Court) / Judgment on Costs
Outcome
Plaintiff awarded costs, with personal liability for the first defendant (liquidator); interest on costs ordered; no indemnity certificate granted.
Legal Topics
['costs' 'unfair Preference Proceedings' 'personal Liability of Liquidators' 'offer of Compromise' 'indemnity Costs' 'interest on Costs']
['equity' 'commercial Law'] ['costs' 'unfair Preference Proceedings' 'personal Liability of Liquidators' 'offer of Compromise' 'indemnity Costs' 'interest on Costs']

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Procedural Posture

Appeal (from Local Court) / Judgment on Costs

Legal Issues

  1. 1 ['Whether costs should follow the event in Local Court and Supreme Court proceedings' 'Whether costs should be paid on indemnity basis due to an offer of compromise' 'Whether liquidator should be personally liable for costs' "Whether an indemnity certificate under Suitors' Fund Act should issue"]

Ratio Decidendi

The plaintiff, having succeeded on appeal by making good the good faith defence under s 588FG(2) of the Corporations Act and having offered a walk-away compromise at significant cost, is entitled to its costs in both courts: on an ordinary basis up to and including 13 July 2021 in the Local Court and indemnity thereafter, and on an ordinary basis in the Supreme Court; those costs are to be paid personally by the liquidator; interest is payable on those costs; no indemnity certificate is granted as the Magistrate’s error was not free of fault by the defendants.

Court Disposition

Plaintiff awarded costs, with personal liability for the first defendant (liquidator); interest on costs ordered; no indemnity certificate granted.

Orders

  • ["Plaintiff's costs in Local Court to be paid personally by the first defendant on the ordinary basis up to and including 13 July 2021, and indemnity basis thereafter, as agreed or assessed." "Plaintiff's costs in the Supreme Court proceedings to be paid personally by the first defendant on the ordinary basis, as...