Sentinel Orange Homemaker Pty Ltd v Davis Investment Group Holdings Pty Ltd (in liquidation) (No 2) [2022] NSWSC 1171

Supreme Court New South Wales

Medium Neutral Citation: Sentinel Orange Homemaker Pty Ltd v Davis Investment Group Holdings Pty Ltd (in liquidation) (No 2) [2022] NSWSC 1171 Hearing dates: 30 August 2022 Date of orders: 30 August 2022 Decision date: 30 August 2022 Jurisdiction: Equity Before: Darke J Decision: Non-party costs order made against a funder of litigation, but not against the liquidator of the insolvent defendant. Catchwords: COSTS – non-party costs orders – costs against liquidators – costs against litigation funders – where plaintiff successful at trial against insolvent defendant – where the insolvent defendant was funded by a related corporate entity with an interest in defeating the plaintiff's claim – whether liquidator's conduct in defending the claim was unreasonable – whether litigation funder should bear insolvent defendant's costs pursuant to the principles in Knight v FP Special Assets Ltd (1992) 174 CLR 178 Legislation Cited: Civil Procedure Act 2005 (NSW), s 98 Corporations Act 2001 (Cth), s 477(2B), s 500(2) Cases Cited: In the matter of Azmac Pty Ltd (in liquidation) (No 2) (2020) 145 ACSR 443; [2020] NSWSC 363 In the matter of Wetherill Park Holdings Pty Ltd (No 2) [2021] NSWSC 1397 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 Knight v FP Special Assets Ltd (1992) 174 CLR 178 Mead v Watson (2005) 23 ACLC 718; [2005] NSWCA 133 Sentinel Orange Homemaker Pty Ltd v Davis Investment Group Holdings Pty Ltd (in liquidation) (2021) 20 BPR 41,497; [2021] NSWSC 550 Yu v Cao (2015) 91 NSWLR 190; [2015] NSWCA 276 Category: Costs Parties: Sentinel Orange Homemaker Pty Ltd (Plaintiff) Davis Investment Group Holdings Pty Ltd (in liquidation) (Defendant) Liam Thomas Bailey (First Respondent to motion) John Davis Motors Pty Ltd (Second Respondent to motion) Representation: Counsel: Mr L Gor (Plaintiff) Mr J Bartos (First Respondent to motion) Ms M Castle (Second Respondent to motion)