Main Camp Tea Tree Oil Ltd v Australian Rural Group Limited (In liq) [2003] NSWSC 953

New South Wales Supreme Court

CITATION : Main Camp Tea Tree Oil Ltd v Australian Rural Group Limited (In liq) [2003] NSWSC 953 HEARING DATE(S) : 17 October, 2003 JUDGMENT DATE : 17 October 2003 JURISDICTION: Equity Division JUDGMENT OF : Palmer J DECISION : Plaintiff's application dismissed with costs.

CATCHWORDS : CORPORATIONS - STATUTORY DEMAND - COSTS ORDER AGAINST THIRD PARTY - LIQUIDATORS - SOLICITORS - Defendant served Statutory Demand for payment of costs certified under the Legal Practitioners Act - Plaintiff sought review of costs determination prior to service of Statutory Demand - review not determined at time of service of Statutory Demand - whether s.208KE(1) Legal Practitioners Act has effect of making no amount in respect of costs due until determination of review of costs assessment - whether liquidators and solicitors of Defendant ought to have been aware of effect of s.208KE(1) - whether their conduct in serving the Statutory Demand and defending proceedings to set it aside was so negligent and unprofessional that a personal costs order should be made against them. HELD: Conduct of liquidators and solicitors not unreasonable in the circumstances. LEGISLATION CITED : Corporations Act, 2001 (Cth) - s.459G Legal Profession Act 1987 (NSW) - s.208KE CASES CITED : - Farrugia v Farrugia [2000] FCA 516 - Graywinter Properties Pty Ltd v Gas & Fuel Corporation Superannuation Fund (1996) 70 FCR 452 PARTIES : Main Camp Tea Tree Oil Ltd - Plaintiff Australian Rural Group Limited (In liq) - Defendant FILE NUMBER(S) : SC 1589/03 COUNSEL : R.K. Eassie - Plaintiff C.R.C. Newlinds SC - Defendant SOLICITORS : Cordato Partners - Plaintiff Clayton Utz - Defendant