In re MF Global Australia Ltd (in liq) [2012] NSWSC 994

Supreme Court New South Wales

Medium Neutral Citation: In re MF Global Australia Ltd (in liq) [2012] NSWSC 994 Hearing dates: 26 - 29 June 2012 Decision date: 29 August 2012 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Parties to be heard as to form of orders and specified issues reserved for further submissions. Catchwords: CORPORATIONS - Winding up - Corporations Act 2001 (Cth) ss 479(3) and 511 - Application for directions in relation to matters arising under winding up - Pooling - Whether liquidators can pool all or some of client segregated accounts - Foreign currency - Whether foreign currency should be converted to Australian dollars for pooling - Entitlement - Basis for client entitlement to be paid money from client segregated accounts - Recovered funds - Where recovered funds should be deposited. Legislation Cited: - Acts Interpretation Act 1901 (Cth) ss 2, 2(2), 15AA, 23 - Australian Securities and Investments Commission Act 2001 (Cth) - Corporations Act 2001 (Cth) Ch 7, Pts 5.6, 7.8, 7.8 Div 2, 7.8 Div 2 Subdiv A, ss 9, 436A, 479, 479(3), 506(1)(b), 511, 554(1), 554C, 760A(a), 761A, 761D, 761E(4), 761E(5), 763B, 763C, 763D, 764A(1), 912A(1)(a), 912A(1)(aa), 981A-981H, 981A, 981A(1), 981A(1)(a), 981A(1)(a)(i), 981A(1)(b)(i), 981A(1)(b)(ii), 981A(1)(b)(iii), 981A(2), 981A(2)(a), 981A(2)(b), 981A(2)(c) 981A(3), 981A(4), 981B, 981B(1), 981B(1)(c), 981B(2), 981C, 981D, 981D(a), 981D(b), 981E, 981E(2), 981F, 981H, 981H(1), 981H(1)(c), 981H(3), 981H(3)(a), 981H(3)(b), 1012D - Corporations Law ss 865-878, 1209, 1209(5)(b), 1224-1227 - Corporations Regulations 2001 (Cth) regs 7.8.01-7.8.05, 7.8.01(2), 7.8.01(4), 7.8.01(5), 7.8.01(5)(c), 7.8.01(8), 7.8.01(11), 7.8.01(14), 7.8.02(1)(a), 7.8.02(1)(c), 7.8.02(2), 7.8.02(3), 7.8.02(7), 7.8.03, 7.8.03(1), 7.8.03(2), 7.8.03(3), 7.8.03(4)-(5), 7.8.03(4), 7.8.03(5), 7.8.03(6), 7.8.03(6)(a), 7.8.03(6)(b)-(c), 7.8.03(6)(d), 7.8.03(6)(e), 7.8.03(7) - Financial Services Reform Act 2001 (Cth) - Futures Industry Act 1986 (Cth) ss 86, 101-104 - Insurance (Agents and Brokers) Act 1984 (Cth) ss 26, 28 - Judiciary Act 1903 (Cth) - Securities Industry Act 1980 (Cth) ss 73-74, 83-86 - Trustee Act 1925 (NSW) s 63 - Uniform Civil Procedure Rules 2005 (NSW) rr 7.6, 7.7 Cases Cited: - Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue [2009] HCA 41; (2009) 239 CLR 27 - Allianz Australia Insurance Ltd v Lo-Giudice [2012] NSWSC 145 - Associated Alloys Pty Ltd v ACN 001 452 106 Pty Ltd (in liq) [2000] HCA 25; (2000) 202 CLR 588 - Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (in liq) [1978] HCA 45; (1978) 141 CLR 335 - Australian Securities Commission v Buckley (1996) 7 BPR 15,024 - Australian Securities and Investments Commission v Enterprise Solutions 2000 Pty Ltd [2001] QSC 082 - Australian Securities and Investments Commission v Letten (No 7) [2010] FCA 1231; (2010) 190 FCR 59; 80 ACSR 401 - Australian Securities and Investments Commission v Nelson [2003] NSWSC 129; (2003) 44 ACSR 719 - Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 - Bathurst City Council v PWC Properties Pty Ltd [1998] HCA 59; (1998) 195 CLR 566 - Byrnes v Kendle [2011] HCA 26; (2011) 243 CLR 253 - Caterpillar of Australia Pty Ltd v Industrial Court of New South Wales [2009] NSWCA 83; (2009) 78 NSWLR 43 - Chang v Laidley Shire Council [2007] HCA 37; (2007) 234 CLR 1 - Chief Commissioner of Stamp Duties v Buckle [1998] HCA 4; (1998) 192 CLR 226 - Commonwealth v Sterling Nicholas Duty Free Pty Ltd [1972] HCA 19; (1972) 126 CLR 297 - Commonwealth of Australia v Booker International Pty Ltd [2002] NSWSC 292 - Council of the Law Society of New South Wales v Australia Injury Helpline Ltd [2008] NSWSC 627; (2008) 71 NSWLR 715 - Daly v Sydney Stock Exchange Ltd [1986] HCA 25; (1986) 160 CLR 371 - Dean-Willcocks v Soluble Solution Hydroponics Pty Ltd (1997) 42 NSWLR 209 - Edwards v Santos Ltd [2011] HCA 8; (2011) 242 CLR 421 - George v Webb [2011] NSWSC 1608 - Georges (in his capacity as joint and several liquidator of Sonray Capital Markets Pty Ltd (in liq)) v Seaborn International (as trustee for the Seaborn Family Trust) [2012] FCA 75; (2012) 87 ACSR 442 - Gibert v Gonard (1884) 54 LJ Ch 439 - Handberg (in his capacity as liquidator of S&D International Pty Ltd (in liq)) v MIG Property Services Pty Ltd [2010] VSC 336; (2010) 79 ACSR 373 - Hill v Hasler [1921] 3 KB 643 - Kimberly-Clark Ltd v Commissioner of Patents (No 3) (1988) 84 ALR 685 - Little v Registrar of the High Court of Australia (1991) 29 FCR 544 - Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar Diocesan Bishop of Macedonian Orthodox Diocese of Australia and New Zealand [2008] HCA 42; (2008) 237 CLR 66 - McLellan v Australian Stock Exchange Ltd [2005] FCA 585; (2005) 144 FCR 327 - McManus RE Pty Ltd v Ward [2009] NSWSC 440; (2009) 74 NSWLR 662 - Mercantile Mutual Insurance (Australia) Ltd v Farrington (1996) 44 NSWLR 634 - Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 - Paul A Davies (Australia) Pty Ltd (in liq) v Davies [1983] 1 NSWLR 440 - Peter Cox Investments Pty Ltd (in liq) v International Air Transport Association [1999] FCA 27; (1999) 161 ALR 105 - Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; (1998) 194 CLR 355 - R v Portus; Ex parte Federated Clerks Union of Australia [1949] HCA 53; (1949) 79 CLR 428 - R v Toohey; Ex parte Attorney-General (NT) [1980] HCA 2; (1980) 145 CLR 374 - Raulfs v Fishy Bite Pty Ltd [2012] NSWCA 135 - Re Australian Elizabethan Theatre Trust (1991) 30 FCR 491 - Re Ansett Australia Ltd (admins apptd) and Korda [2002] FCA 90; (2002) 115 FCR 409; 40 ACSR 433 - Re European Assurance Society Arbitration (Wallberg's Case) (1872) 17 SJ 69 - Re EVTR Ltd [1987] BCLC 646 - Re French Caledonia Travel Service Pty Ltd (in liq) [2003] NSWSC 1008; (2003) 59 NSWLR 361 - Re GB Nathan & Co Pty Ltd (in liq) (1991) 24 NSWLR 674; 5 ACSR 673; 9 ACLC 1291 - Re Global Finance Group Pty Ltd (in liq) [2002] WASC 63; (2002) 26 WAR 385 - Re Greater West Insurance Brokers Pty Ltd [2001] NSWSC 825; (2001) 39 ACSR 301 - Re Griffiths [2004] FCAFC 102; (2004) 139 FCR 185 - Re Lehman Brothers International (Europe) (in admin) [2009] EWHC 3228 (Ch) - Re Lehman Brothers International (Europe) (in admin) [2010] EWCA Civ 917 - Re Lehman Brothers International (Europe) (in admin) [2012] UKSC 6; [2012] 3 All ER 1 - Re Lines Bros Ltd (in liq) [1983] Ch 1; [1982] 2 All ER 183 - Re Magarey Farlam Lawyers Trust Accounts (No 3) [2007] SASC 9; (2007) 96 SASR 337 - Re Northern Counties of England Fire Insurance Co (1880) 17 Ch D 337 - Re One.Tel Networks Holdings Pty Ltd [2001] NSWSC 1065; (2001) 40 ACSR 83 - Re Opes Prime Stockbroking Ltd [2008] FCA 1425; (2008) 171 FCR 473; 68 ACSR 88 - Re Purchas (as liquidator of Astarra Asset Management Pty Ltd (in liq)) [2011] NSWSC 91 - Re Saker & Ors (as liquidators of Great Southern Managers Australia Ltd (recs and mgrs apptd) (in liq)) (No 2) [2011] FCA 958; (2011) 85 ACSR 211 - Re Suco Gold Pty Ltd (in liq) (1984) 33 SASR 99 - Rich v Lennox Palms Estate Pty Ltd [2010] NSWCA 242 - Russell-Cooke Trust Co v Prentis [2002] EWHC 2227; [2003] 2 All ER 478 - Salvo v New Tel Ltd [2005] NSWCA 281 - Samuel Holdings Pty Ltd v Securities Exchange Guarantee Corporation Ltd [2010] QSC 450; (2010) 80 ACSR 706 - Sanderson v Classic Car Insurances Pty Ltd (1985) 10 ACLR 115; (1986) 4 ACLC 114 - Santos v Western Australia [2011] WASCA 216 - Scott v Scott (1963) 109 CLR 649 - Securities Exchange Guarantee Corporation Pty Ltd v Samuel Holdings Pty Ltd [2011] QCA 228; [2012] 1 Qd R 377; (2011) 253 FLR 221 - Sons of Gwalia Ltd v Margaretic [2006] FCAFC 92; (2006) 232 ALR 119 - The Halcyon the Great [1975] 1 WLR 515; [1975] 1 All ER 882 - Toovey v Milne (1819) 2 B & A 683; 105 ER 514 - Twinsectra Ltd v Yardley [2002] UKHL12; [2002] 2 AC 164 - Walker v Corboy (1990) 19 NSWLR 382 - Warne v GDK Financial Solutions Pty Ltd [2006] NSWSC 464; (2006) 57 ACSR 525 - Western Australia v Richards [2008] WASCA 134; (2008) 37 WAR 229 - Wik Peoples v Queensland [1996] HCA 40; (1996) 187 CLR 1 - Wilson v State Rail Authority of New South Wales [2010] NSWCA 198; (2010) 78 NSWLR 704 Texts Cited: - J D Heydon and M J Leeming, Jacobs' Law of Trusts in Australia, 7th ed, LexisNexis Butterworths, 2006 - S B Thomas, "Clayton's Case and the 'Common Pool' Exception" (2004) 15 JBFLP 177 Category: Principal judgment Parties: 411117 of 2011 Christopher Robert Campbell, Vaughan Neil Strawbridge and David John Frank Lombe in their capacity as liquidators of MF Global Australia Limited (in liquidation) (First Plaintiff) MF Global Australia Limited (in liquidation) (Second Plaintiff)