R&B Investments Pty Ltd (Trustee) v Blue Sky Alternative Investments Limited (Administrators Appointed) (in liq) [2023] FCA 703

FEDERAL COURT OF AUSTRALIA

R&B Investments Pty Ltd (Trustee) v Blue Sky Alternative Investments Limited (Administrators Appointed) (in liq) [2023] FCA 703 File numbers: NSD 665 of 2022

Judgment of: LEE J

Date of judgment: 21 June 2023

Date of publication of reasons: 26 June 2023

Catchwords: REPRESENTATIVE PROCEEDINGS – open class securities class action – approval of opt-out notices – where solicitors' common fund order proposed – where extant controversy as to power to make common fund order (CFO) – approval of opt-out notices deferred pending delivery of judgments bearing upon question of power PRACTICE AND PROCEDURE – leave to proceed against company in voluntary liquidation under s 500(2) of the Corporations Act 2001 (Cth) – where leave not opposed – application to join insurers of the first respondent under r 9.05(1) of the Federal Court Rules 2011 (Cth) – discretion to be exercised flexibly and consistently with the overarching purpose – joinder not opposed – application granted PRACTICE AND PROCEDURE – applications for security for costs – where respondent directors separately represented – "broad brush" assessment – interim orders made for security

Legislation: Corporations Act 2001 (Cth) s 500(2) Federal Court of Australia Act 1976 (Cth) Pt IVA, Pt VB, ss 25(6), 33X, 33Y, 33ZF, 37P(2) Federal Court Rules 2011 (Cth) r 9.05(1) Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW)