Application of Crouch [2005] NSWSC 1122

New South Wales Supreme Court

CITATION : Application of Crouch [2005] NSWSC 1122

HEARING DATE(S) : 31 October 2005

JUDGMENT DATE : 31 October 2005

JURISDICTION : Equity

JUDGMENT OF : Campbell J

DECISION : Remuneration approved.

CATCHWORDS : RECEIVERS - remuneration - approval of remuneration of Court appointed receiver

Nicholas James David Crouch - First Plaintiff PARTIES : Heritage Fines Wines Pty Ltd (In Liq) - Second Plaintiff

FILE NUMBER(S) : SC 2928/05

M R Aldridge SC - Plaintiffs COUNSEL : J T Johnson (Investors)

SOLICITORS : Parry Carroll - Plaintiffs

LOWER COURT JURISDICTION :

IN THE SUPREME COURT OF NEW SOUTH WALES EQUITY DIVISION CORPORATIONS LIST

CAMPBELL J

MONDAY 31 OCTOBER 2005

2928/05 APPLICATION OF NICHOLAS JAMES DAVID CROUCH & ANOR JUDGMENT – Ex Tempore 1 HIS HONOUR: This is an application for approval of fees of Mr Crouch. Mr Crouch was appointed as liquidator of Heritage Fine Wines Pty Limited (in liquidation) on 4 May 2005. That company was one which was in a business of receiving money from people on the basis that the money would be used to purchase wines of superior quality, which would then be stored for the particular purchasers. The liquidation arose in the circumstances where it appeared that not all the wine which had been purchased by investors was physically in the possession of the company, and where the accounting records relating to such wine was in the possession of the company were, to put it as neutrally as one can, difficult to follow. Mr Crouch was also appointed as receiver and manager of the wine, as it appeared that there was a realistic prospect that some, or perhaps all, of the wine might not be the property of the company but might be held by it as bailee for individual investors. 2 At the time of his appointment he disclosed to the Court a basis of remuneration which he proposed to charge. It was as follows: "CROUCH INSOLVENCY GUIDE TO HOURLY RATES OF REMUNERATION PERIOD 01 JULY 2005 TO 24 JULY 2005 CLASSIFICATION RATE EXPERIENCE Partner/ 320.00 + 32.00 GST Registered Liquidator/Trustee. Partner bringing his/her specialist skills to Administrations and/or Insolvency tasks. Senior Manager Manager 260.00 + 26.00 GST 6-10 years experience. May be qualified to take appointments in own name. Well developed technical and commercial skills. Supervisor 170.00 + 17.00 GST 4-6 years experience. Typically Qualified. Will have conduct of minor administrations and control junior staff. Senior 120.00 + 12.00 GST 2-4 years experience. Typically Graduate/Qualified. Assist in planning and control of small to medium sized jobs as well as performing some [of] the more difficult work on larger jobs. Intermediate 95.00 + 9.50 GST Up to 2 years experience. Graduate with little or no professional experience. Secretary 125.00 + 12.50 GST Appropriate skills including machine usage. Junior 55.00 + 5.50 GST Appropriate skills.