Hypec Electronics Pty Limited (in liq) v Mead; BL & GY International v Hypec Electronics Pty Limited (in liq) [2004] NSWSC 731

Reported Decision : 50 ACSR 448 61 NSWLR 169

New South Wales Supreme Court

CITATION : Hypec Electronics Pty Limited (in liq) v Mead; BL & GY International v Hypec Electronics Pty Limited (in liq) [2004] NSWSC 731 HEARING DATE(S) : 19/3/04 and 2/6/04 JUDGMENT DATE : 13 August 2004 JURISDICTION: Equity JUDGMENT OF : Campbell J DECISION : No orders for indemnity costs. No personal costs order against liquidator, except concerning a single application where liquidator had stepped outside his proper role. Costs of hearing concerning rule in Ex parte James to be paid from assets of company.

CATCHWORDS : CORPORATIONS - winding up - liquidator causes company to bring proceedings to recover corporate assets - proceedings unsuccessful - personal costs order sought against liquidator - principles governing availability of such an order in Supreme Court - supervisory jurisdiction of Court over court-appointed liquidators - whether appropriate for liquidator to pay costs personally when Court directs him, pursuant to Ex parte James - In re Condon (1874) 9 Ch App 609, not to follow a particular course of conduct - PROCEDURE - costs - orders for costs against non-parties in the Supreme Court - construction of Supreme Court Rules 1970 Part 52A, rule 4 - circumstances where personal order for costs can be made against liquidator, in connection with proceedings which liquidator causes company of which he is liquidator to bring, under supervisory jurisdiction of court over court-appointed liquidators - PROCEDURE - costs - indemnity costs - whether awarded on basis of bad conduct of party prior to litigation Bankruptcy Act 1966 (Cth) Corporations Act 2001 (Cth) District Court Act 1973 LEGISLATION CITED : Gaming Act 1835 (UK) Local Court (Civil Claims) Act 1970 Supreme Court Act 1970 Supreme Court (Corporations) Rules 1999 Adsett v Berlouis (1992) 37 FCR 201 Aiden Shipping Co Ltd v Interbulk Ltd [1986] 1 AC 965 Airservices Australia v Ferrier (1996) 185 CLR 483 Australian Competition & Consumer Commission v Amcor Printing Papers Group Ltd [2000] FCA 163 Australian Forest Managers Ltd (In Liquidation) v Bramley (1996) 19 ACSR 398; (1996) 65 FCR 13 Australian Security Estates Pty Ltd v Bluecrest Holdings Pty Ltd (In Liq); Blue Crest Holdings Pty Ltd v Karren Holdings Pty Ltd & Minskie Holdings Pty Ltd [2002] NSWSC 491; (2002) 169 FLR 111 Re Ayoub; Ex parte Silvia (1983) 67 FLR 144 In re Beddoe; Downes v Cottam [1893] 1 Ch 547 Belar Pty Ltd (in liq) v Mahaffey [2000] 1 Qd R 477 Bent v Gough (1992) 36 FCR 204 Re Biposo Pty Ltd; Condon v Rogers (1995) 17 ACSR 730 BL & GY International Co Pty Ltd v Hypec Electronics Pty Ltd (in liquidation) [2003] NSWSC 1226 Clutha Ltd (in liq) v Millar (No 5) (2002) 43 ACSR 295 The Commissioner of Taxation of the Commonwealth of Australia v St Helen's Farm (ACT) Proprietary Limited (1981) 146 CLR 336 The Commonwealth v Verwayen (1990) 170 CLR 394 Cretazzo v Lombardi (1975) 13 SASR 4 E H Dey Pty Ltd (In Liquidation) v Dey [1966] VR 464 In re Express Engineering Works [1920] 1 Ch 466 Ferrier v Civil Aviation Authority (Federal Court of Australia, Lockhart J, 24 March 1994, unreported) French Caledonia Travel [2003] NSWSC 1008 Re G B Nathan and Co Pty Ltd (In Liq) (1991) 24 NSWLR 674 Harrison v Schipp; Cameron v Schipp [2001] NSWCA 13 Health & Life Care Ltd (In Liq) v South Australian Asset Management Corporation (1995) 65 SASR 48 Hellen & Fordyce v Alex G Grivas Pty Limited [2002] NSWSC 1019 Russell Fraser Henderson v Amadio Pty Ltd (Federal Court of Australia, Herrey J, 22 March 1996, unreported) Hession v Century 21 South Pacific Ltd (In Liq) (1992) 28 NSWLR 120 In Re Home Investment Society (1880) 14 Ch D 167 Hypec Electronics v Mead [2002] NSWSC 36 Hypec Electronics Pty Limited (In Liq) v Mead & Ors [2003] NSWSC 934; (2003) 202 ALR 688 CASES CITED : Hypec v Mead [2004] NSWCA 221 Ex parte James; In re Condon (1874) 9 Ch App 609 Jonas v Rocklea Spinning Mill Pty Ltd [2000] VSC 93; (2000) 18 ACLC 333 (reported sub nom Re MGT Samorr Knitting Pty Ltd (in liq)) Kinsela v Russell Kinsela Pty Ltd (In Liq) (1986) 4 NSWLR 722 Kirwan v Cresvale Far East Ltd (in liq) [2002] NSWCA 395; (2002) 44 ACSR 21 Knight v FP Special Assets Limited (1992) 174 CLR 178 Leicester v Walton (New South Wales Court of Appeal, 22 November 1995, unreported) In re London Metalogical Company [1895] 1 Ch 758Macks v Hedley (1999) 94 FCR 188 In re MC Bacon Ltd [1991] Ch 127 Metalloy Supplies Ltd (in liq) v MA (UK) Ltd [1997] 1 All ER 418 Re J W Murphy & P C Allen; Re BPTC Ltd (in liq) (1996) 19 ACSR 569 NMFM Property Pty Ltd v Citibank Ltd (No 2) [2001] FCA 480; (2001) 109 FCR 77 New South Wales Insurance Ministerial Corporation v Edgkins (1998) 45 NSWLR 8 Re Newark Pty Ltd (in liq) [1993] 1 Qd R 409 Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 In re Pacific Coast Syndicate, Limited [1913] 2 Ch 26 Re Paddington Town Hall Centre Ltd (In Liquidation) (1979) 41 FLR 239 Re Pavelic Investments Pty Ltd (1983) 1 ACLC 1207 Pulsford v Devenish [1903] 2 Ch 625 In re R Bolton and Company; Salisbury-Jones and Dale's Case [1895] 1 Ch 333 Sande v Medsara Pty Ltd (No 2) [2004] NSWSC 262 Scranton's Trustee v Pearse [1922] 2 Ch 87 In re Silver Valley Mines (1882) 21 Ch 381 In Re Thellusson; Ex parte Abdy [1919] 2 KB 735 Thomas Franklin & Sons Ltd v Cameron (1936) 36 SR (NSW) 286 UTSA Pty Ltd (in liq) v Ultra Tune Australia Pty Ltd (1998) 28 ACSR 444 Van Den Hurk v R Martens & Co, Limited (In Liquidation) [1920] 1 KB 150 Wentworth v Wentworth (2000) 52 NSWLR 602 White Constructions (ACT) Pty Ltd (in liq) v White [2004] NSWSC 30 Re Wilson Lovatt & Sons Ltd [1977] 1 All ER 274 Re Wridgemont Display Homes Pty Ltd (1992) 39 FCR 193 Hypec Electronics Pty Limited (in liquidation) - Plaintiff Colin Anthony Mead - First Defendant PARTIES : Lucy Guitar Mead - Second Defendant Mei Chen Yang - Third Defendant Lee Chen-Lien Yang - Fourth Defendant Lamron Pty Limited - Fifth Defendant FILE NUMBER(S) : SC 1268/02, 1933/01 PH Greenwood SC; TJ Morahan - Plaintiff COUNSEL : D Fagan SC; V Bedrossian - First Defendant P Cook - Second, Third, Fourth & Fifth Defendant AR Conolly & Company - Plaintiff SOLICITORS : Etheringtons - First Defendant Ma & Company - Second, Third, Fourth & Fifth Defendant