Hawke v Daniel Efrat Consulting Services Pty Ltd [1999] FCA 412

Hawke v Daniel Efrat Consulting Services Pty Ltd [1999] FCA 412

Section 420(2) of the Corporations Law confers on a receiver the power to dispose of company property, including assignment of a cause of action for litigation funding, in circumstances of insolvency that would otherwise offend maintenance and champerty rules, thus enabling the receiver to validly enter into the agreement with FAI General Insurance Company Ltd.

Jurisdiction
Australia
Judgment Date
14 April 1999
Procedural Posture
Corporations Application / Ex Parte Application for Directions
Outcome
Direction granted
Legal Topics
['receiver Powers' 'assignment of Causes of Action' 'maintenance and Champerty' 'public Policy']
['corporations Law' 'insolvency Law'] ['receiver Powers' 'assignment of Causes of Action' 'maintenance and Champerty' 'public Policy']

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

Corporations Application / Ex Parte Application for Directions

Legal Issues

  1. 1 ["Whether receiver has power to assign company's cause of action to insurance company under s 420(2) of the Corporations Law" 'Whether the assignment would offend public policy concerning maintenance and champerty' "Whether a receiver's general power of sale is statutory or contractual" 'Who is the proper party to the assignment of property vested in the company']

Ratio Decidendi

Section 420(2) of the Corporations Law confers on a receiver the power to dispose of company property, including assignment of a cause of action for litigation funding, in circumstances of insolvency that would otherwise offend maintenance and champerty rules, thus enabling the receiver to validly enter into the agreement with FAI General Insurance Company Ltd.

Court Disposition

Direction granted

Orders

  • ['The applicant, in his capacity as Receiver of Daniel Efrat Consulting Services Pty Ltd (Receiver Appointed)(In Liquidation), has the power, on behalf of the Company, to enter into the agreement with FAI General Insurance Company Ltd, dated 15 October 1998, as identified in the reasons for judgment herein.']