Canstruct Pty Ltd v Project Sea Dragon Pty Ltd (in liquidation) (No 6) [2024] FCA 1406

Canstruct Pty Ltd v Project Sea Dragon Pty Ltd (in liquidation) (No 6) [2024] FCA 1406

Canstruct was wholly successful and costs should follow the event; both Project Sea Dragon and Seafarms were active protagonists and proper defendants. The deed administrators are entitled to their costs from the deed fund, without opposition.

Parties
Plaintiff: Canstruct Pty Ltd; First Defendant: Project Sea Dragon Pty Ltd (in liquidation); Second Defendant: Shaun Christopher McKinnon and Andrew Peter Fielding in their capacity as deed administrators of Project Sea Dragon Pty Ltd (in liquidation) (formerly subject to a deed of company arrangement); Third Defendant: Seafarms Group Limited
Jurisdiction
Australia
Judgment Date
09 December 2024
Procedural Posture
Costs Application in a Corporations and Insolvency Matter / Post Trial, Following Main Judgment and Dismissal of Appeal
Outcome
Orders for costs in favour of the plaintiff against the first and third defendants; second defendants' costs to be paid from the deed fund created under the DOCA.
Legal Topics
Costs, Deed of Company Arrangement, Liquidation, Priority of Creditors
Corporations Law Insolvency Law Commercial Law Costs Deed of Company Arrangement Liquidation Priority of Creditors

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Parties

Canstruct Pty Ltd

Plaintiff

Project Sea Dragon Pty Ltd (in liquidation)

First Defendant

Shaun Christopher McKinnon and Andrew Peter Fielding in their capacity as deed administrators of Project Sea Dragon Pty Ltd (in liquidation) (formerly subject to a deed of company arrangement)

Second Defendant

Seafarms Group Limited

Third Defendant

Procedural Posture

Costs Application in a Corporations and Insolvency Matter / Post Trial, Following Main Judgment and Dismissal of Appeal

Legal Issues

  1. 1 Who should bear the costs of the application to set aside the deed of company arrangement and to wind up Project Sea Dragon Pty Ltd
  2. 2 Whether Seafarms Group Limited was a proper party for the purposes of a costs order
  3. 3 Entitlement of the deed administrators to indemnity for their costs from the deed fund

Ratio Decidendi

Canstruct was wholly successful and costs should follow the event; both Project Sea Dragon and Seafarms were active protagonists and proper defendants. The deed administrators are entitled to their costs from the deed fund, without opposition.

Court Disposition

Orders for costs in favour of the plaintiff against the first and third defendants; second defendants' costs to be paid from the deed fund created under the DOCA.

Orders

  • The first and third defendants pay the plaintiff's costs of and incidental of the action, to be taxed if not agreed.
  • The second defendants be entitled to payment of their costs of these proceedings from the deed fund created under the deed of company arrangement entered into by Project Sea Dragon Pty Ltd and dated 23 March 2023.