MG Constructions Pty Ltd v Radroc Pty Ltd (No 2) [2023] FCA 105

MG Constructions Pty Ltd v Radroc Pty Ltd (No 2) [2023] FCA 105

The circumstances warranted that the funds held on trust, less Jackson McDonald's fixed costs, be paid into Court under r 14.11 and Division 2.5 of the Federal Court Rules 2011 (Cth), with all relevant parties provided the opportunity to submit their position as to the ultimate distribution of the monies.

Parties
Plaintiff: MG Constructions Pty Ltd; Defendant: Radroc Pty Ltd; Interested Party: Jackson McDonald
Jurisdiction
Australia
Judgment Date
16 February 2023
Procedural Posture
Practice and Procedure / Application by Interested Party for Orders Relating to Disbursement of Trust Funds
Outcome
Funds to be paid into Court; programming orders made for written submissions; Jackson McDonald awarded fixed costs from fund
Legal Topics
Funds in Trust Account, Share Acquisition, Deregistration of Company, Payment Into Court
Practice and Procedure Corporations Law Funds in Trust Account Share Acquisition Deregistration of Company Payment Into Court

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Parties

MG Constructions Pty Ltd

Plaintiff

Radroc Pty Ltd

Defendant

Jackson McDonald

Interested Party

Procedural Posture

Practice and Procedure / Application by Interested Party for Orders Relating to Disbursement of Trust Funds

Legal Issues

  1. 1 Whether the funds held in solicitors' trust account following collapse of share acquisition and deregistration of a party should be paid into Court under r 14.11 of the Federal Court Rules 2011 (Cth)
  2. 2 Appropriate procedure for disbursement and determination of trust funds where entitlement is unclear

Ratio Decidendi

The circumstances warranted that the funds held on trust, less Jackson McDonald's fixed costs, be paid into Court under r 14.11 and Division 2.5 of the Federal Court Rules 2011 (Cth), with all relevant parties provided the opportunity to submit their position as to the ultimate distribution of the monies.

Court Disposition

Funds to be paid into Court; programming orders made for written submissions; Jackson McDonald awarded fixed costs from fund

Orders

  • The funds paid to Jackson McDonald pursuant to orders of the Court made 18 March 2013 and held on trust in a controlled money account, together with accrued interest thereon but less Jackson McDonald's costs fixed at $2,900, be paid into Court and paid into the Litigants' Fund under Division 2.5 of the Federal Court...
  • Within 28 days each of the Australian Securities and Investments Commission (ASIC), Jackson McDonald and Radroc to provide a written submission to the registrar (not exceeding five pages) stating their position as to how the funds should be distributed