Lawrence, in the matter of Cool Breeze Clothing Pty Ltd (in liquidation) [2022] FCA 985

Lawrence, in the matter of Cool Breeze Clothing Pty Ltd (in liquidation) [2022] FCA 985

It is appropriate to approve entry into the litigation funding agreement under s 477(2B) of the Corporations Act as it is in the best interests of creditors, relates only to public examinations, involves minimal risks, and the terms are reasonable and mitigate any risk. Suppression and non-publication orders are appropriate to prevent prejudice to the proper administration of justice by limiting access to confidential funding arrangements.

Jurisdiction
Australia
Judgment Date
19 August 2022
Procedural Posture
Liquidation Approval Application / Judgment on Application
Outcome
application granted
Legal Topics
['liquidation' 'litigation Funding Agreement' 'public Examinations' 'suppression Orders']
['corporations Law' 'commercial Law' 'insolvency Law'] ['liquidation' 'litigation Funding Agreement' 'public Examinations' 'suppression Orders']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 1 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Liquidation Approval Application / Judgment on Application

Legal Issues

  1. 1 ['Whether liquidators should be approved to enter into a litigation funding agreement under s 477(2B) of the Corporations Act' 'Whether suppression and non-publication orders should be made under ss 37AF and 37AG of the Federal Court of Australia Act']

Ratio Decidendi

It is appropriate to approve entry into the litigation funding agreement under s 477(2B) of the Corporations Act as it is in the best interests of creditors, relates only to public examinations, involves minimal risks, and the terms are reasonable and mitigate any risk. Suppression and non-publication orders are appropriate to prevent prejudice to the proper administration of justice by limiting access to confidential funding arrangements.

Court Disposition

application granted

Orders

  • ['Access to confidential exhibit RL-2 restricted to plaintiffs and treated as confidential.' 'Plaintiffs to file complete (confidential) and redacted versions of affidavit of Richard Lawrence.' 'Liquidators approved to enter funding agreement with the Commonwealth in form of RL-2.' 'Costs of the application be costs...