Hall & Ors v Poolman & Ors (No 2) [2007] NSWSC 1494

Hall & Ors v Poolman & Ors (No 2) [2007] NSWSC 1494

The Court held that the Commissioner should pay the Liquidators' costs of the Unfair Preference Proceedings only up to the date he conceded liability, as subsequent costs were not increased by his conduct. The Directors are to pay costs from their joinder. A stay was ordered on all orders contingent on the finding of insolvency until 29 February 2008, considering possible appeals. There is sufficient factual basis for an enquiry under CA s 536(1)(a) into the Liquidators’ conduct.

Parties
Plaintiff: Gregory Winfield Hall; Plaintiff: Philip Patrick Carter; Plaintiff: Reynolds Wines Ltd (R&M Appointed) (in liq); Plaintiff: Reynolds Vineyards Pty Ltd (R&M App) (In liq); Defendant: Peter Renwick Poolman; Defendant: Malcolm Geoffrey Irving; Defendant: Constance Helen Poolman; Defendant: Kalivise Pty Ltd; Defendant: Sennabeau Pty Ltd; Defendant: Morecraft Kitchens & Joinery Pty Ltd; Cross Defendant/cross Claimant: John Giske Martini; Cross Defendant: Rupert Clifton-Bligh; Cross Defendant: Sandra Lee Yates; Defendant/applicant: Commissioner of Taxation
Jurisdiction
Australia
Judgment Date
20 December 2007
Procedural Posture
Equity / Post Judgment (costs and Ancillary Orders)
Outcome
Orders made as specified; costs apportioned; stay of some orders until 29 February 2008; enquiry into Liquidators' conduct to proceed but stayed temporarily.
Legal Topics
Costs Orders, Stay of Proceedings, Liquidators Supervision and Inquiry, Director Indemnity Under S 588 FGA
Insolvency Corporations Law Civil Procedure Costs Orders Stay of Proceedings Liquidators Supervision and Inquiry Director Indemnity Under S 588 FGA

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Parties

Gregory Winfield Hall

Plaintiff

Philip Patrick Carter

Plaintiff

Reynolds Wines Ltd (R&M Appointed) (in liq)

Plaintiff

Reynolds Vineyards Pty Ltd (R&M App) (In liq)

Plaintiff

Peter Renwick Poolman

Defendant

Malcolm Geoffrey Irving

Defendant

Constance Helen Poolman

Defendant

Kalivise Pty Ltd

Defendant

Sennabeau Pty Ltd

Defendant

Morecraft Kitchens & Joinery Pty Ltd

Defendant

John Giske Martini

Cross Defendant/cross Claimant

Rupert Clifton-Bligh

Cross Defendant

Sandra Lee Yates

Cross Defendant

Commissioner of Taxation

Defendant/applicant

Procedural Posture

Equity / Post Judgment (costs and Ancillary Orders)

Legal Issues

  1. 1 Whether costs order should be made against Commissioner for costs incurred after he admitted liability
  2. 2 Whether stay should be ordered pending appeal
  3. 3 Whether inquiry into Liquidators' conduct should proceed

Ratio Decidendi

The Court held that the Commissioner should pay the Liquidators' costs of the Unfair Preference Proceedings only up to the date he conceded liability, as subsequent costs were not increased by his conduct. The Directors are to pay costs from their joinder. A stay was ordered on all orders contingent on the finding of insolvency until 29 February 2008, considering possible appeals. There is sufficient factual basis for an enquiry under CA s 536(1)(a) into the Liquidators’ conduct.

Court Disposition

Orders made as specified; costs apportioned; stay of some orders until 29 February 2008; enquiry into Liquidators' conduct to proceed but stayed temporarily.

Orders

  • Orders in terms of paragraphs 1 to 7, 9, 11, 12, 17, 19, 22 to 26 of the Plaintiffs' Amended Short Minutes of Order.
  • Declarations in terms of paragraphs 8, 13 to 16, 20 and 21 of the Amended Short Minutes of Order.