Australia, June 12 -- New South Wales Land and Environment Court issued text of the following judgement on May 13:

1. The background of this matter is as follows. On 13 December 2024 after hearing a contested appeal in relation to some costs assessments I delivered reasons for judgment: A.C.N. 627 087 030 Pty Ltd atf The YBL Trust v Elisabeth Theodore; A.C.N. 627 087 030 Pty Ltd atf The YBL Trust v Andrew John Price [2024] NSWDC 592. I made orders indicating that I would deal with any questions of costs at a later date, which later date became 20 February 2025 where I made limited costs orders in favour of the Respondent, and gave the Respondent leave to apply within a period of time to have those costs assessed as a gross sum costs order.

2. The Respondent made such an application on or about 5 March 2025. On 16 March 2025 the parties agreed to a timetable to bring the gross sum application on for a hearing. On 29 April 2025, when that timetable had run its course and the matter was ready to be determined, Mr Amirbeaggi, on behalf of A.C.N 627 087 030 Pty Ltd, now known as Costs Assessment Dispute Pty Ltd ("the Company"), which was the Appellant in the proceedings and, by that stage, had changed its name, I infer this happened some time very shortly before the appointment of Voluntary Administrators, emailed my chambers informing me that Voluntary Administrators ("the Voluntary Administrators") had been appointed to the Company on 30 April and sought an order that no further steps be taken on the gross sum costs application, to which I responded by email sent by my associate where I prima facie accepted his contention that s 440D of the Corporations Act 2001 (Cth) ("Corporations Act") applied to the application for a gross sum costs order component of the proceedings, and I adjourned the matter. Because the Respondent had not been heard on that application, I reserved liberty to apply.

3. Thereafter, the Respondent applied to relist the matter. Mr Rogers, of counsel, has appeared before me today on behalf of the Respondents and has made submissions to the effect that s 440D does not apply and that, in all the circumstances, the assessment of the costs ought proceed notwithstanding the appointment of the Voluntary Administrators to the Company.

4. I should record that it is, as I understand it, common ground that Voluntary Administrators were appointed to the Company on 28 April 2025 and that the Administration remains on foot and that what is usually referred to as the second meeting of creditors is scheduled for 1 June 2025. There is not as yet a Deed of Company Arrangement drafted to be put to creditors at that meeting.

5. Mr Amirbeaggi, solicitor, appeared today purportedly on behalf of the Company, but on the instructions of the directors and not the Voluntary Administrators. I very much doubt that gives him a proper retainer. The Voluntary Administrators separately emailed my chambers yesterday advising that their position is that the effect of s 440D is that there is a stay on the proceedings and that no-one has asked the Administrators to consent to the continuation of the hearings. They also said:

"We understand that the company may intend to continue these proceedings subject to creditors' agreeing to a deed of company arrangement proposal which will be put to creditors in the coming weeks."

6. That statement seems to indicate a lack of understanding by the Voluntary Administrators in relation to the current state of the proceedings, being the appeal by the Company from the Costs Assessment Review Panel in this Court. That case is finished, other than the Respondent's outstanding application for a gross sum costs order. Perhaps the Voluntary Administrators mean that they intend to continue to oppose the gross sum costs order - that is the only component of the case which has any life left in it - or perhaps they mean that they might wish to appeal my decision. I do not know.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1971fb1e4671b80fe71fa6a1)

Disclaimer: Curated by HT Syndication.