Porter v Miller Street Pty Ltd [2008] FCAFC 77

FEDERAL COURT OF AUSTRALIA

Porter v Miller Street Pty Ltd [2008] FCAFC 77

CORPORATIONS – winding up – company acting solely as trustee – appointment of new trustee – duties of liquidator in relation to trust assets – assets encumbered by secured loans – liquidator's refusal to transfer assets to new trustee without protection against claims from creditors and in respect of his costs and expenses – whether unreasonable conduct by liquidator. TRUSTS – equitable compensation for breach of duty by liquidator in winding up trustee company – loss of rent due to liquidator's failure to seek new tenant of premises – penalty interest payable to company consequent upon liquidator's failure to transfer encumbered property to new trustee – whether liquidator personally liable. TRUSTS – trustee company wound up – liquidator appointed – new trustee appointed – company remaining registered as proprietor of trust land – whether liquidator's obligations in respect of trust property terminates on being advised of appointment of new trustee.

Corporations Act 2001 (Cth) Re Crest Realty Pty Ltd (In Liq) and the Companies Act (1977)1 NSWLR 664 cited Re GB Nathan & Co Pty Ltd (In Liq) (1991) 24 NSWLR 674 cited Irvine v Australian Sharetrading and Underwriting Ltd (in liq) [1996] 22 ACSR 765 cited Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) 117 FCR 424 cited RICHARD JAMES PORTER AS OFFICIAL LIQUIDATOR OF TAYCORP THREE PTY LIMITED (IN LIQUIDATION) (ACN 071 753 734) v MILLER STREET PTY LIMITED (AS TRUSTEE FOR THE TAYLES DISCRETIONARY TRUST NO 3) (ACN 113 155 178)

VID 1193 OF 2007

SUNDBERG, JACOBSON AND GORDON JJ

14 MAY 2008

MELBOURNE IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VID 1193 OF 2007

ON APPEAL FROM A JUDGE OF THE FEDERAL COURT OF AUSTRALIA

BETWEEN: RICHARD JAMES PORTER AS OFFICIAL LIQUIDATOR OF TAYCORP THREE PTY LIMITED (IN LIQUIDATION) (ACN 071 753 734)