In the matter of Wetherill Park Holdings Pty Ltd (No 2) [2021] NSWSC 1397

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Wetherill Park Holdings Pty Ltd (No 2) [2021] NSWSC 1397 Hearing dates: On the papers, last submissions received 21 June 2021 Date of orders: 4 November 2021 Decision date: 04 November 2021 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Non-party costs orders made. Catchwords: COSTS – application for costs against non-parties – principles at [4]-[15] – company wound up as woefully insolvent -$35M – defence of winding up proceedings funded by secured creditors – proceedings protracted as a consequence – 17 months under application heard – 4 day hearing –serious, unsubstantiated allegations made by secured lenders' representative and then withdrawn – unsatisfactory witnesses – costs sought against director installed by secured creditors, secured creditors who funded the defence, representatives of secured creditors – non-party costs order made against some. Legislation Cited: Civil Procedure Act 2005 (NSW), s 98 Corporations Act 2001 (Cth), ss 459R, 459S Cases Cited: Allied Pastoral Holdings Pty Ltd v Commissioner of Taxation [1983] 1 NSWLR 1 Aussie Vic Plant Hire Pty Ltd v Esanda Finance Corporation Ltd (2008) 232 CLR 314; [2008] HCA 9 Browne v Dunn (1829) 57 ER 909 Capital Securities XV Pty Ltd (in liq) v Calleja [2020] NSWSC 688 Dwyer v Volkswagen Group Australia Pty Ltd t/as Volkswagen Australia (No 2) [2021] NSWSC 1137 Dymocks Franchise Systems (NSW) Pty Ltd v Todd (No 2) [2005] 1 NZLR 145 FPM Constructions Pty Ltd v Council of the City of Blue Mountains [2005] NSWCA 340 Gore v Justice Corp Pty Ltd (2002) 119 FCR 429; [2002] FCAFC 83 Hamilton v Al Fayed (No 2) [2003] QB 1175 In the matter of Wetherill Park Holdings Pty Ltd [2021] NSWSC 282 Jeffery & Katauskas Pty Ltd v SST Consulting Pty Ltd (2009) 239 CLR 75; [2009] HCA 43 Jin Lian Group Pty Ltd (in liq) v ACapital Finance Pty Ltd (No 2) [2021] NSWSC 1202 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Knight v FP Special Assets Ltd (1992) 174 CLR 178; [1992] HCA 28 KSMC Holdings Pty Ltd v Bowden (No 3) [2020] NSWCA 158 Manderson M & F Consulting (a Firm) v Incitec Pivot Ltd (No 3) [2011] VSC 441 May v Christodoulou (2011) 80 NSWLR 462; [2011] NSWCA 75 Parsons (a pseudonym) v R [2016] VSCA 17 Rushton (Qld) Pty Ltd v Rushton (NSW) Pty Ltd [2004] QSC 47 Symphony Group Plc v Hodgson [1994] QB 179 Vestris v Cashman (1998) 72 SASR 449 Xabregas v The Owners – Strata Plan No 79205 [2014] NSWSC 1027 Category: Costs Parties: Wetherill Park Plaza Pty Ltd (Plaintiff) Wetherill Park Holdings Pty Ltd (Defendant) Representation: Counsel: Mr A Fernon SC (Plaintiff) No appearance (Defendant)