Yesterday, the Supreme Court of New South Wales delivered a decision of relevance to the practice of every liquidator in Australia.
Justice Brereton, whose recent decisions on insolvency practitioner remuneration have drawn a fair bit of attention, delivered a complex decision in which he reached conclusions of significance to any liquidator winding up a corporate trustee, considering a claim for superannuation, or seeking court approval of fees. Continue reading
Yesterday the Supreme Court published its long-awaited decision in the Joe & Joe Developments litigation.
The litigation has been the subject of much gossip in the industry as it concerned allegations of rampant overcharging by insolvency practitioners and their lawyers. Commentators and industry observers have been poised, salivating, waiting for the scandal to break.
In the event, as is often the case with gossip, the facts were found not to justify the hype. Continue reading
On Friday, the NSW Supreme Court handed down two further decisions in its drive to hammer home to liquidators the importance of proportionality when claiming remuneration.
In both cases, his Honour Brereton J built on his earlier decision in AAA Financial Intelligence Ltd (in liquidation) (No 2)  NSWSC 1270 (see update here), emphasising that hourly-rate-based charging – even if every attendance is meticulously recorded and all of the time spent can be justified – may be a wholly inappropriate basis for claiming remuneration.
A recent Federal Court decision has found that solicitors do not owe any overarching duty of loyalty to former clients. Continue reading
A surprising Federal Court decision has determined that a liquidator “is not an officer of the corporation for the purposes of the [Corporations] Act”.
Do liquidators have a duty of care to the guarantors of secured debt?
A recent decision of the Victorian Supreme Court has built on a 2007 South Australian decision suggesting that they do. Continue reading
Being a liquidator can be a risky business. Liquidators (and their legal advisers) have a long tradition of putting their bodies on the line for the sake of their work, selflessly risking personal harm through exposure to such dangers as high cholesterol, liver failure and other prandiogenous ailments.
Injury by gunshot is, thankfully, less commonly encountered. For this we must thank Justice Young. Twenty years ago, sitting as a judge of the New South Wales Supreme Court, he delivered a judgment in which the issue of shooting liquidators was condemned in the harshest possible terms.
The Federal Court has recently continued the courts’ emerging practice of appointing incumbent administrators as liquidators when there is no reason to question their professionalism or independence, and where the continuation of their tenure may result in costs savings for creditors. Continue reading
This update concerns a significant new risk for tax agents, which is fortunately able to be minimised by implementing a single, simple measure. Continue reading
The Federal Court has recently issued a stark warning about the need for insolvency practitioners to do their homework, thoroughly, before approaching the court for directions – and to use the court only to clarify points that remain unclear after proper investigation and research. Continue reading