In the matter of Warwick Keneally as administrator of Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd) [2015] NSWSC 2037

In the matter of Warwick Keneally as administrator of Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd) [2015] NSWSC 2037

The court accepted, on the evidence and on a consensual but compromised basis between the parties, that specific work done by Mr Keneally as improperly appointed administrator was of incontrovertible benefit to the company and thus properly recoverable by him on a quantum meruit basis. Accordingly, judgment was entered for the reduced and agreed sum.

Parties
Plaintiff: Cheng Lam; First Defendant: Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd); Second Defendant: Warwick Keneally as administrator of Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd)
Jurisdiction
Australia
Judgment Date
10 November 2015
Procedural Posture
Corporations Voluntary Administration / Application for Remuneration (quantum Meruit) by Former Administrator; Orders by Consent
Outcome
Judgment for Second Defendant against First Defendant for quantum meruit claim; second day of hearing on costs vacated by consent.
Legal Topics
Voluntary Administration, Administrator Remuneration, Quantum Meruit, Invalid Appointment of Administrator, Compromise of Claim
Corporations Law Equity Voluntary Administration Administrator Remuneration Quantum Meruit Invalid Appointment of Administrator Compromise of Claim

Case Brief

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Parties

Cheng Lam

Plaintiff

Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd)

First Defendant

Warwick Keneally as administrator of Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd)

Second Defendant

Procedural Posture

Corporations Voluntary Administration / Application for Remuneration (quantum Meruit) by Former Administrator; Orders by Consent

Legal Issues

  1. 1 Whether the court is satisfied that the amount claimed by administrator for quantum meruit remuneration is properly recoverable following an invalid appointment
  2. 2 Whether specific categories of administrator's work were of incontrovertible benefit to the company and thus recoverable

Ratio Decidendi

The court accepted, on the evidence and on a consensual but compromised basis between the parties, that specific work done by Mr Keneally as improperly appointed administrator was of incontrovertible benefit to the company and thus properly recoverable by him on a quantum meruit basis. Accordingly, judgment was entered for the reduced and agreed sum.

Court Disposition

Judgment for Second Defendant against First Defendant for quantum meruit claim; second day of hearing on costs vacated by consent.

Orders

  • Judgment be entered against Australian Blue Mountain International Cultural & Tourist Group Pty Ltd (admin apptd) in favour of Warwick Keneally as administrator in the amount of $108,374.15 in respect of quantum meruit claim for remuneration, costs and disbursements.
  • Balance of quantum meruit claim dismissed by consent.