Lowe v Pascoe (No 13) [2022] NSWSC 320

Lowe v Pascoe (No 13) [2022] NSWSC 320

Because the shortfall showed that the Administrator had not received reimbursement for the full extent of KST's misappropriations, KST's estate must notionally bring to account misappropriated partnership funds not made good before participating in distributions. FC Chow estate could not reopen the calculation percentages for Sunly and Gordon after the Administrator's percentages had been accepted in substance. The Administrator's costs were to be paid from the funds held by the Administrator, with party/party costs to be addressed by written submissions.

Jurisdiction
Australia
Judgment Date
23 March 2022
Procedural Posture
Equity Proceedings Concerning Trusts and Trustees / Consequential Orders on Short Minutes for Further Conduct and Finalisation of the Partnership Proceedings and the FC Chow Proceedings, Determined on the Papers
Outcome
Administrator directed to bring in short minutes reflecting the Court's conclusions; directions made for written submissions on costs.
Legal Topics
['trust Distributions' 'notional Accounting for Misappropriated Partnership Funds' "administrator's Costs" 'party/party Costs' 'consequential Orders']
['equity' 'trusts' 'partnerships' 'costs'] ['trust Distributions' 'notional Accounting for Misappropriated Partnership Funds' "administrator's Costs" 'party/party Costs' 'consequential Orders']

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Procedural Posture

Equity Proceedings Concerning Trusts and Trustees / Consequential Orders on Short Minutes for Further Conduct and Finalisation of the Partnership Proceedings and the FC Chow Proceedings, Determined on the Papers

Legal Issues

  1. 1 ["Whether the estate of KST should receive a distribution from funds held by the Administrator and how KST's defalcations should be brought to account." 'Whether FC Chow estate could re-agitate the calculation of notional distributions received by Sunly and Gordon.' 'How costs of both proceedings should be dealt with.']

Ratio Decidendi

Because the shortfall showed that the Administrator had not received reimbursement for the full extent of KST's misappropriations, KST's estate must notionally bring to account misappropriated partnership funds not made good before participating in distributions. FC Chow estate could not reopen the calculation percentages for Sunly and Gordon after the Administrator's percentages had been accepted in substance. The Administrator's costs were to be paid from the funds held by the Administrator, with party/party costs to be addressed by written submissions.

Court Disposition

Administrator directed to bring in short minutes reflecting the Court's conclusions; directions made for written submissions on costs.

Orders

  • ['Direct that the Administrator, within 7 days, bring in short minutes of orders giving effect to all conclusions reached in the proceedings.' 'Direct that, within 14 days thereafter, the plaintiffs in both proceedings file and serve submissions as to costs.' 'Direct that, within a further period of 14 days, the...