Weston v Aughton Flats Pty Ltd, in the matter of Empire Property and Investment Group Pty Ltd (in liq) [2019] FCA 310

FEDERAL COURT OF AUSTRALIA

Weston v Aughton Flats Pty Ltd, in the matter of Empire Property and Investment Group Pty Ltd (in liq) [2019] FCA 310

File number(s): NSD 1043 of 2017

Judge(s): FARRELL J

Date of judgment: 8 March 2019

Catchwords: CORPORATIONS – where the first plaintiff is the liquidator of the second plaintiff – where second plaintiff is holder of 2,500 shares in issued capital of defendant – where shares are part of a company title scheme conferring the right to reside in or let a particular flat built on land of which the company is the registered proprietor – where defendant claims to be entitled to be paid levies, interest and legal costs pursuant to lien over shares – where notice threatening forfeiture for non-payment is withdrawn shortly before first plaintiff appointed as second plaintiff's liquidator – where shares in defendant sold by first plaintiff and defendant claims lien for unpaid levies, interest and legal costs, including legal costs incurred after the appointment of the first plaintiff as liquidator of the second plaintiff – where no assessment made of legal costs under the Legal Profession Uniform Law (NSW) – whether the defendant's lien pursuant to articles of association extends to legal costs where there is no forfeiture of shares or other enforcement action taken for unpaid levies and interest – where consent orders are made requiring payment to the defendant out of the proceeds of the sale of the shares in respect of unpaid levies and interest leaving the question of legal costs to be determined – defendant entitled to part but not all of the legal costs

Legislation: Corporations Act 2001 (Cth) s 471B Legal Profession Act 2004 (NSW) s 350, 353 Legal Profession Uniform Law (NSW) ss 171, 198 Strata Schemes Management Act 1996 (NSW) s 80 Strata Schemes Management Act 2015 (NSW) s 184