Sullivan v Energy Services International Pty Ltd [2006] NSWSC 843

Sullivan v Energy Services International Pty Ltd [2006] NSWSC 843

The liquidator acted unreasonably in issuing disclaimers and paid himself in priority to costs that should have been paid, warranting a personal costs order against him for the plaintiff's costs not paid by the company, including the plaintiff's costs payable to the third defendant.

Parties
Plaintiff: Emily Sullivan t/as Sullivan's Transport and General Services; First Defendant: Energy Services International Pty Ltd; Second Defendant (liquidator): William Balfour Rangott
Jurisdiction
Australia
Judgment Date
21 August 2006
Procedural Posture
Civil / Post Judgment Costs Application
Outcome
Costs order made against second defendant liquidator personally
Legal Topics
Costs, Liquidator's Personal Liability, Disclaimer of Property, Priority of Payments in Liquidation
Insolvency Equity Costs Liquidator's Personal Liability Disclaimer of Property Priority of Payments in Liquidation

Case Brief

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Parties

Emily Sullivan t/as Sullivan's Transport and General Services

Plaintiff

Energy Services International Pty Ltd

First Defendant

William Balfour Rangott

Second Defendant (liquidator)

Procedural Posture

Civil / Post Judgment Costs Application

Legal Issues

  1. 1 Whether voluntary liquidator should pay plaintiff's costs personally
  2. 2 Whether costs payable by the plaintiff to the third defendant should be paid by the voluntary liquidator
  3. 3 Priority of costs orders over liquidator's fees in winding up

Ratio Decidendi

The liquidator acted unreasonably in issuing disclaimers and paid himself in priority to costs that should have been paid, warranting a personal costs order against him for the plaintiff's costs not paid by the company, including the plaintiff's costs payable to the third defendant.

Court Disposition

Costs order made against second defendant liquidator personally

Orders

  • The second defendant, being a voluntary liquidator, to pay personally costs of the plaintiff that were not paid by the first defendant, including the costs that the plaintiff is liable to pay to the third defendant.
  • The costs include the costs of the present application on 1 August 2006.