Hawke v Daniel Efrat Consulting Services Pty Ltd [1999] FCA 412

FEDERAL COURT OF AUSTRALIA

Hawke v Efrat Consulting Services [1999] FCA 412 CORPORATIONS – application by receiver of a company for directions pursuant to s 424(1) of the Corporations Law – agreement to assign company's cause of action to insurance company – lack of funds to otherwise prosecute the cause of action – condition precedent of agreement that Court give direction to the effect that receiver has power to assign the cause of action – whether s 420(2) of the Corporations Law gives the receiver power to dispose of a cause of action in circumstances that would otherwise offend public policy concerning maintenance and champerty – whether receiver's general power of sale is a statutory power or contractual power – proper party to assignment of property vested in the company. CHAMPERTY AND MAINTENANCE – exception to rule against champerty and maintenance – statutory power of receiver to sell or otherwise dispose of in any manner all or any part of the property of a company. Corporations Law, ss 420(1), 420(2), 424(1), 477(2)(c) Wrongs Act 1958 (Vic), s 32 Bank of Melbourne Ltd v HPM Pty Ltd (In Liquidation) (1997) 26 ACSR 110, applied Re GB Nathan and Co Pty Ltd (In Liquidation) (1991)24 NSWLR 674, cited Re Movitor Pty Ltd (In Liquidation) (1996) 64 FCR 380, applied Re Tosich Construction Pty Ltd (1997) 73 FCR 219, applied Re William Felton & Co Pty Ltd (1998) 16 ACLC 1294, applied UTSA Pty Ltd v Ultra Tune Australia Pty Ltd (1996) 14 ACLC 1262, applied Magic Menu Systems Pty Ltd v AFA Facilitation Pty Ltd (1997) 72 FCR 261, considered Baker v Jones [1954] 1 WLR 1005, cited Martell v Consett Iron Co Ltd [1955] 1 Ch 363, cited Knight v FP Special Assets Ltd (1992) 174 CLR 178, cited Caboolture Park Shopping Centre Pty Ltd (In Liquidation) v White Industries (Qld) Pty Ltd (1993) 45 FCR 224, cited Abraham v Thompson [1997] 4 All ER 362, considered Trendtex Trading Corporation v Credit Suisse [1982] AC 679, considered Re Nguyen; Ex parte Official Trustee in Bankruptcy (1992) 35 FCR 320, cited Re Cirillo; Ex parte Official Trustee in Bankruptcy (1996) 65 FCR 576, cited Guy v Churchill (1888) 40 Ch D 481, cited Ramsey v Hartley [1977] 2 All ER 673, cited Brookfield v Davey Products Pty Ltd (1996) 14 ACLC 303, cited