Billingsley v Napoli, in the matter of Biometric Identity Systems Pty Ltd (administrators appointed) (No 2) [2021] FCA 526

FEDERAL COURT OF AUSTRALIA

Billingsley v Napoli, in the matter of Biometric Identity Systems Pty Ltd (administrators appointed) (No 2) [2021] FCA 526 File number(s): NSD 1365 of 2019

Judgment of: FARRELL J

Date of judgment: 19 May 2021

Catchwords: COSTS – application for order that defendant pay first plaintiffs' costs incurred after 28 August 2019 on an indemnity basis – where first plaintiffs, as administrators of company, sought orders validating their appointment – whether defendant's continued opposition to validating order after 28 August 2019 until it was withdrawn on 25 September 2019 was not reasonable or consistent with the overarching purpose set out in s 37M of the Federal Court of Australia Act 1976 (Cth) – whether defendant's persistence resulted in the need for an application to further extend the convening period– whether defendant should pay the costs of the application to extend the convening period– application granted COSTS – application by defendant for third-party costs order against directors of second plaintiff – where claimed defect in administrators' appointment arose from potentially invalid appointment of director – whether directors "prompted", "supported", "steered" or "influenced" the administrators to continue the proceedings – application dismissed

Legislation: Corporations Act 2001 (Cth) Part 5.3A, ss 290, 438B, 439A, 443D, 443E, 443F, 447A, 447C Corporations Act 2001 (Cth) Sch 2, Insolvency Practice Schedule (Corporations) s 70-10 Federal Court of Australia Act 1976 (Cth) ss 37M, 37N, 43 Federal Court Rules 2011 (Cth) r 40.02 Insolvency Practice Rules (Corporations) 2016 (Cth) r 75-225