Bridgecorp Finance v Sterling Estates [2006] NSWSC 961

Bridgecorp Finance v Sterling Estates [2006] NSWSC 961

The plaintiff was entitled to its costs, including the costs of resisting the adjournment application, because the administrators sought an indulgence, the evidence supporting the proposed deed at the adjournment application was thin and incomplete, the administrators themselves initially opposed the deed proposal...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
18 September 2006
Procedural Posture
Winding Up Proceeding in Insolvency Involving Voluntary Administration and a Deed of Company Arrangement / Contested Costs Application After Adjournment of the Winding Up Proceeding and Approval of the Deed of Company Arrangement
Outcome
Proceeding dismissed; defendant ordered to pay the plaintiff's costs, including the adjournment application costs and the costs argument.
Legal Topics
['voluntary Administration' 'winding Up' 'deed of Company Arrangement' 'adjournment Under S 440 A' 'costs Discretion Under S 1335(2)' 'six Month Limit Under S 459 R']
['corporations' 'insolvency' 'civil Procedure' 'costs'] ['voluntary Administration' 'winding Up' 'deed of Company Arrangement' 'adjournment Under S 440 A' 'costs Discretion Under S 1335(2)' 'six Month Limit Under S 459 R']

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Procedural Posture

Winding Up Proceeding in Insolvency Involving Voluntary Administration and a Deed of Company Arrangement / Contested Costs Application After Adjournment of the Winding Up Proceeding and Approval of the Deed of Company Arrangement

Legal Issues

  1. 1 ["Whether the company in administration should be ordered to pay the plaintiff's costs of the winding up proceeding after voluntary administration led to a deed of company arrangement." "Whether the plaintiff's costs should include the costs of unsuccessfully resisting the administrators' adjournment application."]

Ratio Decidendi

The plaintiff was entitled to its costs, including the costs of resisting the adjournment application, because the administrators sought an indulgence, the evidence supporting the proposed deed at the adjournment application was thin and incomplete, the administrators themselves initially opposed the deed proposal because of uncertainties, and it was not unreasonable for the plaintiff to oppose the adjournment. The later approval of the deed of company arrangement did not justify a different costs approach.

Court Disposition

Proceeding dismissed; defendant ordered to pay the plaintiff's costs, including the adjournment application costs and the costs argument.

Orders

  • ['Proceeding dismissed.' "Order the defendant to pay the plaintiff's costs as agreed or assessed, including the plaintiff's costs with respect to the defendant's application for an adjournment determined by the court on 1 February 2006, and the plaintiff's costs with respect to the argument for costs."]