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
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 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
Yesterday, the Supreme Court of New South Wales handed down a decision which highlights the importance of taking care in the preparation of winding-up documents.
The Plaintiff’s winding-up application failed solely because their solicitor had not sufficiently explained how their Statutory Demand had been served Continue reading