FEDERAL COURT OF AUSTRALIA Richards v Macquarie Bank Limited (No 6) [2015] FCA 299 Citation: Richards v Macquarie Bank Limited (No 6) [2015] FCA 299 Parties: TRACEY RICHARDS v MACQUARIE BANK LIMITED ABN 46 008 583 542, STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) ACN 064 804 691 and AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION File number: QUD 590 of 2010 Judge: LOGAN J Date of judgment: 17 March 2015 Catchwords: PRACTICE AND PROCEDURE – settlement scheme approved under s 33V of the Federal Court of Australia Act 1976 (Cth) – application to Court by Administrator for approval of Administrator's costs in relation to the settlement scheme Legislation: Corporations Act 2001 (Cth) Federal Court of Australia Act 1976 (Cth) s 33V Cases cited: Richards v Macquarie Bank Limited (No 5) [2013] FCA 1442 Date of hearing: 17 March 2015 Place: Brisbane Division: GENERAL DIVISION Category: Catchwords Number of paragraphs: 6 Counsel for the Applicant: The Applicant did not appear Counsel for the Respondents: The Respondents did not appear Counsel for the Administrator appointed under clause 23 of the Second Settlement Scheme : Mr D Campbell QC IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY GENERAL DIVISION QUD 590 of 2010 BETWEEN: TRACEY RICHARDS Applicant AND: MACQUARIE BANK LIMITED ABN 46 008 583 542 First Respondent STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) ACN 064 804 691 Second Respondent AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION Third Respondent JUDGE: LOGAN J DATE OF ORDER: 17 MARCH 2015 WHERE MADE: BRISBANE THE COURT ORDERS THAT: 1. Pursuant to s 33V(2) of the Federal Court of Australia Act 1976 (Cth) (the Act) the Administrator's professional fees and disbursements incurred up to 9 March 2015 in the sum of $16,283.28 be approved for payment in accordance with clause 45A of the Second Settlement Scheme approved by the Court on 20 December 2013 (the SSS). 2. Pursuant to s 33V(2) of the Act the Administrator's Costs to be incurred after 9 March 2015 be approved up to the sum of $57,000 for payment in accordance with clause 46 of the SSS. 3. Pursuant to s 33V(2) of the Act the sum of $21,495 be approved as further Administration Costs within the meaning of clause 46 of the SSS (in addition to the amounts approved by earlier orders). Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011. IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY GENERAL DIVISION QUD 590 of 2010 BETWEEN: TRACEY RICHARDS Applicant AND: MACQUARIE BANK LIMITED ABN 46 008 583 542 First Respondent STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) ACN 064 804 691 Second Respondent AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION Third Respondent JUDGE: LOGAN J DATE: 17 MARCH 2015 PLACE: BRISBANE REASONS FOR JUDGMENT (REVISED FROM TRANSCRIPT) 1 This is a further application pursuant to s 33V(2) of the Federal Court of Australia Act 1976 (Cth), and clauses 45A and 46 of what is known as the "Second Settlement Scheme", approved by the court on 20 December 2013, for the approval of administrators' costs, as well as fees and disbursements, notably legal expenses in respect of the administration of that scheme. 2 These reasons for judgment must be read in conjunction with those given by me in respect of the approval of the Second Settlement Scheme on 13 December 2013 (see: Richards v Macquarie Bank Limited (No 5) [2013] FCA 1442). The Second Settlement Scheme relates to the compromise of proceedings in the form of a class action as between Ms Richards and Macquarie Bank. Ms Richards and other members of the class were members of the clientele of the now collapsed Storm Financial Limited and also of Macquarie Bank. 3 The application has been notified to the Australian Securities and Investment Commission (the Commission). The Commission has chosen not to appear today. I take that as indicative that the Commission does not see in the proposed orders any particular subject upon which it would seek, as it has in the past quite properly, to be heard in the public interest and in respect of its general responsibilities in relation to the administration of the Corporations Act 2001 (Cth). 4 The fees and charges that are promoted for approval strike me as reasonable. The legal expenses concerned have been vetted by Mr Mazzeo, who has the requisite independence to assist the court on that subject. It is a noteworthy feature of the administration of the Second Settlement Scheme that it has been conducted in a way which, on present estimates, will yield a higher return, namely 29.79 cents in the dollar of the loss assessed under the scheme than that which was anticipated immediately prior to the approval of the Second Settlement Scheme. The anticipated return at that stage was about 28 cents in the dollar. 5 If need be, this matter can be returned for finalisation under liberty to apply. For the present, the prospect is that the fees and charges approved will take the administration of the scheme up to its finalisation. 6 For these reasons, I make orders in terms of the draft which I have signed and placed with the papers. I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Logan. Associate: Dated: 2 April 2015