Maylord Equity Management Pty Ltd v ReelTime Media Ltd (No 2) [2008] NSWSC 1133

The administrators should be personally liable for the plaintiff's costs on the indemnity basis because they acted unreasonably both in provoking and defending the litigation, and it is unjust for those costs to be borne by the insolvent company or its creditors.

Jurisdiction: Australia
Judgment Date: 28 October 2008
Procedural Posture: Corporations – Administration – Costs / Consequential Orders Following Judgment
Outcome: Plaintiff's costs to be paid by the administrators personally on the indemnity basis.
Legal Topics: ['administration' 'costs' 'personal Liability of Administrators']

['corporations Law'] ['administration' 'costs' 'personal Liability of Administrators']

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Procedural Posture

Corporations – Administration – Costs / Consequential Orders Following Judgment

Legal Issues

1 ["Whether administrators who were not formally joined as parties should be made personally liable for the plaintiff's costs on an indemnity basis" 'Whether the administrators acted unreasonably in provoking and defending the litigation']

Ratio Decidendi

Court Disposition

Plaintiff's costs to be paid by the administrators personally on the indemnity basis.

Orders

["Plaintiff's costs of the proceedings be paid by the administrators personally, on the indemnity basis." "Administrators not entitled to indemnify themselves for those costs out of ReelTime's remaining assets."]