Norman, in the matter of Forest Enterprises Australia Limited (Administrators Appointed) (Receivers & Managers Appointed) v FEA Plantations Ltd (Administrators Appointed) (Receivers Appointed) (No 3) [2011] FCA 624

Norman, in the matter of Forest Enterprises Australia Limited (Administrators Appointed) (Receivers & Managers Appointed) v FEA Plantations Ltd (Administrators Appointed) (Receivers Appointed) (No 3) [2011] FCA 624

Receivers' applications for directions regarding internal and external leases raised substantive issues; Court determined that, having been unsuccessful regarding the leases, receivers must pay costs to FEA Plantations Ltd on a party and party basis, and pay indemnity costs to FEA Growers Group (representing investor interests). For the external leases, with no substantive orders made, costs between plaintiffs and FEA Plantations Ltd lie where they fall, and FEA Growers Group's costs are payable out of any scheme surplus after secured and priority debts.

Parties
Plaintiff: Timothy Bryce Norman; Plaintiff: Salvatore Algeri; Plaintiff: Forest Enterprises Australia Limited (Administrators Appointed) (Receivers & Managers Appointed); Plaintiff: FEA Carbon Pty Ltd (Subject to Deed of Company Arrangement) (Receivers and Managers Appointed); Plaintiff: Tasmanian Plantation Pty Ltd (Subject to Deed of Company Arrangement) (Controllers Acting); Defendant: FEA Plantations Ltd (Administrators Appointed) (Receivers Appointed); Defendant: FEA Growers Group Inc. A0054610B
Jurisdiction
Australia
Judgment Date
03 June 2011
Procedural Posture
Application for Directions and Determination of Substantive Insolvency/leasing Issues / Post Hearing, Judgment and Orders
Outcome
Applications dismissed or no orders made; cost orders as stated
Legal Topics
Receivership, Managed Investment Schemes, Summary Applications, Statutory Liability, Leases
Insolvency Corporations Law Receivership Managed Investment Schemes Summary Applications Statutory Liability Leases

Case Brief

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Parties

Timothy Bryce Norman

Plaintiff

Salvatore Algeri

Plaintiff

Forest Enterprises Australia Limited (Administrators Appointed) (Receivers & Managers Appointed)

Plaintiff

FEA Carbon Pty Ltd (Subject to Deed of Company Arrangement) (Receivers and Managers Appointed)

Plaintiff

Tasmanian Plantation Pty Ltd (Subject to Deed of Company Arrangement) (Controllers Acting)

Plaintiff

FEA Plantations Ltd (Administrators Appointed) (Receivers Appointed)

Defendant

FEA Growers Group Inc. A0054610B

Defendant

Procedural Posture

Application for Directions and Determination of Substantive Insolvency/leasing Issues / Post Hearing, Judgment and Orders

Legal Issues

  1. 1 Which FEA Group company was the landlord of the land on which forestry operations were conducted
  2. 2 Was the FEA Group tenant in breach of the lease
  3. 3 Had the FEA Group tenant repudiated the lease

Ratio Decidendi

Receivers' applications for directions regarding internal and external leases raised substantive issues; Court determined that, having been unsuccessful regarding the leases, receivers must pay costs to FEA Plantations Ltd on a party and party basis, and pay indemnity costs to FEA Growers Group (representing investor interests). For the external leases, with no substantive orders made, costs between plaintiffs and FEA Plantations Ltd lie where they fall, and FEA Growers Group's costs are payable out of any scheme surplus after secured and priority debts.

Court Disposition

Applications dismissed or no orders made; cost orders as stated

Orders

  • Plaintiffs to pay costs of First Defendant on party and party basis (VID 692 of 2010)
  • Plaintiffs to pay costs of Second Defendant on indemnity basis (VID 692 of 2010)