Wonderful Pty Ltd v Faithful Investment Pty Ltd [2024] NSWSC 472

Wonderful Pty Ltd v Faithful Investment Pty Ltd [2024] NSWSC 472

The consent regime adopted on 16 April 2024 did not preclude a costs order because Sandu, through its nominated directors on Faithful's board, had acted unreasonably in the management of Faithful and the Trust, and the evidence showed significant reason for concern about Faithful's conduct. The steps taken shortly before and after the hearing substantially vindicated Wonderful's complaints. But for the compromise, Wonderful would very likely, and almost certainly, have succeeded on the application for interim relief and had achieved a substantial victory. Sandu should therefore pay Wonderful's costs of the interim relief application; Wonderful's costs of its amendment motion should be...

Jurisdiction
Australia
Judgment Date
26 April 2024
Procedural Posture
Equity Commercial List; Procedural Ruling on Costs / Costs Determination After Settlement of Interlocutory Application for Appointment of a Provisional Liquidator to the First Defendant and a Receiver to the Trust
Outcome
Costs ordered in favour of Wonderful against Sandu for the interim relief application; costs of Wonderful's amendment application ordered to be costs in the cause.
Legal Topics
['proceedings Between Trustees and Beneficiaries' 'alleged Trustee Mismanagement and Partiality' 'provisional Liquidator' 'receiver to Trust Property' 'costs Where Interlocutory Application Settled Without Adjudication on the Merits']
['equity' 'trusts' 'corporations' 'costs'] ['proceedings Between Trustees and Beneficiaries' 'alleged Trustee Mismanagement and Partiality' 'provisional Liquidator' 'receiver to Trust Property' 'costs Where Interlocutory Application Settled Without Adjudication on the Merits']

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Procedural Posture

Equity Commercial List; Procedural Ruling on Costs / Costs Determination After Settlement of Interlocutory Application for Appointment of a Provisional Liquidator to the First Defendant and a Receiver to the Trust

Legal Issues

  1. 1 ['Whether Wonderful should receive its costs of its application to appoint a provisional liquidator to Faithful and a receiver to the Trust despite the application being compromised without adjudication on the merits.' "Whether Sandu acted unreasonably, through its nominated directors on Faithful's board, so as to justify a costs order against it." 'Whether Wonderful would almost certainly have succeeded or had achieved a substantial victory on its application for interim relief.' "What costs order should be made for Wonderful's application to amend its List Statement."]

Ratio Decidendi

The consent regime adopted on 16 April 2024 did not preclude a costs order because Sandu, through its nominated directors on Faithful's board, had acted unreasonably in the management of Faithful and the Trust, and the evidence showed significant reason for concern about Faithful's conduct. The steps taken shortly before and after the hearing substantially vindicated Wonderful's complaints. But for the compromise, Wonderful would very likely, and almost certainly, have succeeded on the application for interim relief and had achieved a substantial victory. Sandu should therefore pay Wonderful's costs of the interim relief application; Wonderful's costs of its amendment motion should be...

Court Disposition

Costs ordered in favour of Wonderful against Sandu for the interim relief application; costs of Wonderful's amendment application ordered to be costs in the cause.

Orders

  • ["Second defendant to pay the plaintiff's costs of its application to appoint a provisional liquidator to the first plaintiff and receiver to the trust." "Plaintiff's costs of its application to amend its List Statement to be the plaintiff's costs in the cause." 'The parties should confer and agree on the orders...