In the matter of Iris Diversified Property Pty Ltd (in liquidation) [2019] NSWSC 1593

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Iris Diversified Property Pty Ltd (in liquidation) [2019] NSWSC 1593 Hearing dates: 13 November 2019 Decision date: 18 November 2019 Jurisdiction: Equity - Corporations List Before: Black J Decision: The examination summonses not be set aside. The orders for production in narrowed form not be set aside although parties to be heard as to their terms. Parties to be heard as to costs. Catchwords: EVIDENCE – privilege – client legal privilege – where documents previously produced to liquidators of former trustee under s 530B of the Corporations Act 2001 (Cth) – whether current trustee can claim privilege.

CORPORATIONS – winding up – public examination of directors, officers and others – where solicitor acting for major creditor also acts for liquidators – where liquidators will retain independent solicitor to instruct counsel for purposes of conducting examinations – whether examination summonses should be set aside. Legislation Cited: - Corporations Act 2001 (Cth) ss 181, 184, 530A, 530B, 596A, 596B - Evidence Act 1995 (NSW) ss 118, 119 - Insolvency Practice Schedule (Corporations) - Supreme Court (Corporations) Rules 1999 (NSW) r 11.5 - Uniform Civil Procedure Rules 2005 (NSW) rr 1.12, 36.16(2)(b) Cases Cited: - Australian Securities and Investments Commission (ASIC) v Lindberg [2009] VSCA 234; (2009) 25 VR 398 - AWB Limited v Australian Securities and Investments Commission [2008] FCA 1877 - Caratti v Harris and Kirman as joint liquidators of GH1 Pty Ltd [2019] FCAFC 124 - Commissioner of Taxation v Donoghue [2015] FCAFC 183 - Cowell v British American Tobacco Australia Services Ltd [2007] VSCA 301 - Crescent Farm (Sidcup) Sports Ltd v Sterling Offices Ltd [1972] Ch 553 - Farrow Mortgage Services Pty Ltd (in liq) v Webb (1996) 39 NSWLR 601 - Hancock v Rinehart (Privilege) [2016] NSWSC 12 - Kimberley Diamonds Ltd v Arnautovic [2017] FCAFC 91; (2017) 252 FCR 244 - Krok v Szaintop Homes Pty Ltd (No 1) [2011] VSC 16 - Meteyard v Love [2005] NSWCA 444 - Re Bridgeport – Advisers & Asset Managers Pty Ltd [2005] NSWSC 757; (2005) 221 ALR 146 - Re Cardinal Group Pty Ltd (in liq) [2018] NSWSC 748 - Re Doran Constructions Pty Ltd (in liq) [2002] NSWSC 215; (2002) 194 ALR 101 - Re Global Advanced Metals Pty Ltd [2019] NSWSC 1545 - Re Iris Diversified Property Pty Ltd (in liq) (2019) NSWSC 1482 - Re Ji Woo International Education Centre Pty Ltd [2019] NSWSC 93 - Re Londonderry's Settlement [1965] Ch 918; [1964] 3 All ER 855 - Re New Tel Ltd (in liq); Evans v Wainter Pty Ltd [2005] FCAFC 114; (2005) 145 FCR 176 - Re Trio Capital Ltd (in liq) [2011] NSWSC 1483 - Schreuder v Murray (No 2) [2009] WASCA 145 ; (2009) 41 WAR 169 - Sharpe v Grobbel [2017] NSWSC 1065 - Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2008] NSWSC 1070 - Trevorrow v State of South Australia (No 4) [2006] SASC 42; (2006) 94 SASR 64 - Wily Re LED (South Coast) Pty Ltd [2009] NSWSC 946; (2009) 76 NSWLR 428 Texts Cited: - S Odgers, Uniform Evidence Law (Lawbook Co, 14th ed, 2019) Category: Procedural and other rulings Parties: The Owners – Strata Plan 84741 (Plaintiff) Iris Diversified Property Pty Ltd (in liq) (First Defendant) Henry Peter McKenna (Second Defendant) Wassim Arnaout (First Applicant) Rodney Paul Hawkins (Second Applicant) Iris Diversified Investments Pty Ltd (Third Applicant) Iris Group Management Pty Ltd (Fourth Applicant) Iris Hotel Business Pty Ltd (Fifth Applicant) Iris Hotel Group Pty Ltd (Sixth Applicant) IDI SPV7 Pty Ltd (Seventh Applicant) Brendan Warren Jones (Eighth Applicant) Christopher Palmer and Liam Thomas Bailey as liquidators of Iris Diversified Property Pty Ltd (in liq) (Respondents) Representation: Counsel: J R Clarke SC/E L Beechey (Applicants) R D Glasson (Respondents)