Motor Vehicles Insurance Ltd v Woodlawn Capital Pty Ltd [2015] NSWSC 401

Motor Vehicles Insurance Ltd v Woodlawn Capital Pty Ltd [2015] NSWSC 401

Woodlawn is required to repay to MVIL the GST component ($559,194) deducted without entitlement, as well as any 'fees on fees' and excess fees not contractually due. The contractual indemnity in clause 5 of the Second IMA does not apply to claims brought by MVIL itself, and neither Woodlawn nor Messrs McNamara and Breen are entitled to indemnity costs from the fund. Woodlawn is only entitled to reimbursement from the trust for expenses of $18,936 relating to tax/accounting preparation. MVIL is entitled to interest to judgment on sums withheld, at a rate equal to the difference between court rates and interest actually earned. Woodlawn is to pay one third of MVIL's costs. MVIL must pay...

Jurisdiction
Australia
Judgment Date
10 April 2015
Procedural Posture
Proceedings (equity Division Commercial List) / Post Trial Judgment Resolving Outstanding Issues Following Earlier Principal Judgment
Outcome
Parties directed to bring in short minutes to give effect to these reasons; proceedings to be finally disposed once orders agreed/made.
Legal Topics
['costs' 'trustee Indemnity' 'freezing Orders' 'interest to Judgment' 'contractual Indemnities' 'gst Appropriations' 'accessorial Liability']
['equity' 'trusts and Trustees' 'commercial Law' 'civil Procedure'] ['costs' 'trustee Indemnity' 'freezing Orders' 'interest to Judgment' 'contractual Indemnities' 'gst Appropriations' 'accessorial Liability']

Case Brief

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Procedural Posture

Proceedings (equity Division Commercial List) / Post Trial Judgment Resolving Outstanding Issues Following Earlier Principal Judgment

Legal Issues

  1. 1 ['Whether further sums are payable between the parties and whether trustee is entitled to indemnity/reimbursement' 'Whether trustee and its directors are contractually entitled to indemnity costs' 'Whether interest to judgment should be ordered and entitlement/licensing to amounts withheld' 'Whether either party achieved substantial success and the proper costs order' 'Whether deduction of GST/excess fees was an Event of Default and whether claim on indemnity arises']

Ratio Decidendi

Woodlawn is required to repay to MVIL the GST component ($559,194) deducted without entitlement, as well as any 'fees on fees' and excess fees not contractually due. The contractual indemnity in clause 5 of the Second IMA does not apply to claims brought by MVIL itself, and neither Woodlawn nor Messrs McNamara and Breen are entitled to indemnity costs from the fund. Woodlawn is only entitled to reimbursement from the trust for expenses of $18,936 relating to tax/accounting preparation. MVIL is entitled to interest to judgment on sums withheld, at a rate equal to the difference between court rates and interest actually earned. Woodlawn is to pay one third of MVIL's costs. MVIL must pay...

Court Disposition

Parties directed to bring in short minutes to give effect to these reasons; proceedings to be finally disposed once orders agreed/made.

Orders

  • ['Woodlawn to repay $559,194 to MVIL (GST component) and any excess fees wrongly deducted.' 'Woodlawn entitled solely to reimbursement of $18,936 for trust tax/accounting expenses.' "Woodlawn to pay one third of MVIL's costs." "MVIL to pay Messrs McNamara and Breen's costs only to extent exceeding those incurred by...