Wonderful Pty Ltd v Faithful Investment Pty Ltd [2024] NSWSC 472

Supreme Court New South Wales

Medium Neutral Citation: Wonderful Pty Ltd v Faithful Investment Pty Ltd [2024] NSWSC 472 Hearing dates: 2 April 2024; further written submissions on 5 and 8 April 2024; consent orders 16 April 2024; written submissions on costs on 19 April 2024 Decision date: 26 April 2024 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Second defendant to pay the plaintiff's costs of its application to appoint a provisional liquidator to the first plaintiff and receiver to the trust. Plaintiff's costs of its application to amend its List Statement to be the plaintiff's costs in the cause. Catchwords: EQUITY – trusts and trustees – proceedings between trustees and beneficiaries – whether trustee has mismanaged trust and behaved partially – whether provisional liquidator and receiver should be appointed to the trustee COSTS – party/party – court's discretion – where proceeding has settled without adjudication on the merits of the application – where application to appoint provisional liquidators to trustee company settled following hearing – whether plaintiff would almost certainly have succeeded so as to warrant a costs order notwithstanding the fact that its claim was not adjudicated on – whether second defendant acted unreasonably such as to warrant a costs order against it notwithstanding the fact that the plaintiff's claim was not adjudicated on Legislation Cited: Corporations Act 2001 (Cth) Cases Cited: Allstate Exploration NL v Batepro Australia Pty Ltd [2004] NSWSC 261 Australian Securities and Investments Commission v ActiveSuper Pty Ltd (No 2) [2013] FCA 234 Australian Securities and Investments Commission v Continental Coal Ltd [2016] FCA 416 Australian Securities and Investments Commission v Weerappah (No 2) [2009] FCA 249 Australian Securities Commission v Solomon (1996) 19 ACSR 73 Edwards Madigan Torzillo Briggs Pty Ltd v Stack [2003] NSWCA 302 Montgomery Windsor (NSW) Pty Ltd v Ilopa Pty Ltd (1984) 2 ACLC 224 One.Tel Ltd v Deputy Commissioner of Taxation [2000] FCA 270 Re Huntford Pty Ltd (1993) 12 ACSR 274 Re McLennan Holdings Pty Ltd (1983) 7 ACLR 732 Re Minister for Immigration & Ethnic Affairs; Ex parte Lai Qin (1997) 186 CLR 622; [1997] HCA 6 Re New Cap Reinsurance Corporation Holdings Ltd (1999) 32 ACSR 234; [1999] NSWSC 536 Tickle v Crest Insurance Co of Australia Ltd (1984) 2 ACLC 493 Zempilas v JN Taylor Holdings Ltd (No 2) (1990) 55 SASR 103; (1990) 9 ACLC 147 Texts Cited: JD Heydon, Jacobs' Law of Trusts in Australia (8th ed, 2016, LexisNexis Butterworths) Category: Procedural rulings Parties: Wonderful Pty Limited (Plaintiff) Faithful Investment Pty Limited (First Defendant) Sandu Pty Ltd (Second Defendant) GPA Investment Pty Ltd (Third Defendant) Choi Kook Fun Lui (Fourth Defendant) Michael Bing Kin Lui (Fifth Defendant) Lavender Kam Tuen Tsim Pang (Sixth Defendant) Representation: Counsel: D A Hughes (Plaintiff) M Condon SC / J Buncle (First Defendant) D Priestley SC / J Rodgers (Second Defendant, Fourth, Fifth and Sixth Defendants)