Jones, in the matter of Great Southern Ltd (in liq) [2017] FCA 169

FEDERAL COURT OF AUSTRALIA

Jones, in the matter of Great Southern Ltd (in liq) [2017] FCA 169 File number: WAD 619 of 2015

Judge: GILMOUR J

Date of judgment: 1 March 2017

Catchwords: CONTRACTS – whether the parties intended to create a legally binding arrangement between them – Atco Controls Pty Ltd (in liq) v Newtronics Pty Ltd (Receivers and Managers Appointed) (In liq) (2009) 25 VR 411 distinguished CORPORATIONS – inter-company finance arrangements and debt – debt subordination – s 563C of the Corporations Act 2001 (Cth) – whether there existed an enforceable debt subordination agreement or declaration at the time of company administration EQUITY – doctrine of contribution – consideration of what is a just proportion or proper proportionate share of a joint obligation – consideration of the effect of insolvency on the obligation to pay contribution – whether there was a receipt of a relevant benefit giving rise to a right of contribution

Legislation: Corporations Act 2001 (Cth) Corporations Regulations 2001 (Cth) Imperial Acts Adopting Ordinance 1867 (WA) Mercantile Law Amendment Act 1856 (Imp)

Cases cited: AE Goodwin Ltd v AG Healing Ltd (1979) 7 ACLR 481 cited Atco Controls Pty Ltd (in liq) v Newtronics Pty Ltd (Receivers and Managers Appointed) (In liq) (2009) 25 VR 411 distinguished Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) (2008) 39 WAR 1 applied Bovis Lend Lease Pty Ltd v Wily (2003) 45 ACSR 612 cited Burke v LFOT Pty Ltd (2002) 209 CLR 282 cited Ermogenous v Greek Orthodox Community of SA Inc (2002) CLR 95 applied Friend v Booker (2009) 239 CLR 129 cited Hitchman v Stewart (1855) 3 Drewry 271 approved Horne v Chester and Fein Property Developments Pty Ltd [1987] VR 913 considered Israel v Foreshore Properties Pty Ltd (1980) 30 ALR 631 cited Lavin v Toppi (2015) 254 CLR 459 cited Lowe & Sons v Dixon & Sons (1885) 16 QBD 455 approved Norman and Another v FEA Plantations Ltd and Another (2011) 195 FCR 97 considered Official Trustee in Bankruptcy v Citibank Savings Ltd (1995) 38 NSWLR 116 cited Ogilvie v Ferry [2010] NSWSC 379 cited Parker v Alessi [2011] NSWSC 947 applied Re Contract Corporation (Gooch's Case) (1871-2) LR 7 Ch App 207 cited Re Intercontinental Properties Pty Ltd (in liq) (1977) 2 ACLR 488 cited Re National Safety Council of Australia, Victoria Division [1990] VR 29 cited Re NIAA Corp Ltd (in liq) (1993) 33 NSWLR 344 cited Re Parker; Morgan v Hill [1894] 3 CH 400 applied Re TVSN Ltd [2005] NSWSC 692 approved Smith v Cock [1911] AC 317 cited United States Trust Co of New York v Australia and New Zealand Banking Group Ltd (1995) 37 NSWLR 131 considered