Litigation Funding

Equititrust settlement “inescapably unedifying”

Hall Chadwick’s Blair Pleash. Hall Chadwick’s Richard Albarran. As can be seen from the latest judgment in the Equititrust saga, it can be tough to make the case that litigation funding benefits anyone other than the lawyers, the insolvency practitioners and the funder when creditors collect zeros. That of course is not to suggest litigation funding has no place. Far from it. In unfunded insolvencies…


SPLs for Forge Group exposes KPMG/Ferriers conflict

McGrathNicol’s Rob Brauer. McGrathNicol’s Rob Kirman. The two Robs, Messrs Kirman and Brauer have been served some work from the Forge Group liquidation courtesy of KPMG’s takeover of Ferrier Hodgson. Last week in the Supreme Court of West Australia, orders were made appointing the McGrathNicol pair special purpose liquidators (SPLs). Those orders were made on the application of Martin Jones and Wayne Rushton, Forge’s general…


Forgery allegations almost invalidate appointment

BPS Recovery’s Mitchell Ball. BPS Recovery’s Mitchell Ball has dodged a bullet after forgery allegations raised doubts about the validity of his appointment in August 2013 as liquidator of Bluemine Pty Ltd. In the NSW Supreme Court yesterday INO listened with mounting interest as the court heard that a former director of Bluemine – one Gino Cassiniti – wanted to withdraw previous admissions he’d made…


PKF’s Hancock prevails in curious SPL case

BRI Ferrier’s Andrew Cummins. PKFs’ Trent Hancock. You have to admire the nerve of a director who demands a special purpose liquidator (SPL) stump up $150,000 in security for costs ahead of proceedings brought by the SPL against the director for allegedly stripping his company of assets before executing a phoenix. Such nerve however is on display In the matter of 77738930144 Pty Limited (in…


PKF partner crosses swords with bar baron

PKFs’ Trent Hancock. Trent Hancock will have to divulge details of a litigation funding agreement after a Federal Court judge ruled that Shadd Danesi was entitled to see aspects of the agreement in respect of proceedings Hancock has commenced to recover $6.4 million from the bar baron. Hancock – in his capacity as liquidator of South Townsville Developments – is trying to recover the funds…


Jirsch partner overcomes ATO objections

Jirsch Sutherland Melbourne partner Glenn Crisp has had a win of sorts over the Deputy Commissioner of Taxation (DCoT) in regards to his tenure, his fees and a proposed litigation funding agreement. In the matter of Imagebuild Group Pty Ltd [2019] VSC 213 (5 April 2019) we get a detailed breakdown of why the DCoT regarded Crisp’s claims for remuneration as excessive and how Crisp…


ATO pursues cancer-stricken lit. funder to bankruptcy

JUSTKapital founder Phil Kapp. Former Corrs high flyer and JUSTKapital co-founder Philip Kapp declared bankruptcy earlier this month after a lengthy battle with cancer left him financially vulnerable to attack by the Australian Tax Office (ATO). In recent days Kapp has been informing friends and business associates of the reasons for his declaration of bankruptcy on March 4, 2019. Assuring them that his work is…


Litigation funder bankrupt

JUSTKapital founder Phil Kapp. Philip Kapp, the former Clayton Utz supremo who plunged with such gusto into the emerging litigation funding sector, has declared himself bankrupt. Federal Court records show that the Deputy Commissioner of Taxation (DCoT) lodged a bankruptcy notice and creditors petition against Kapp on the National Personal Insolvency Index (NPII) in August last year. A month later the DCoT served Kapp. In…


Conflict concern sees PwC cede to SPLs

PwC’s Daniel Walley. It’s not often that special purpose liquidators (SPLs) are appointed on the application of general purpose liquidators (GPLs). Usually a creditor with a beef about conflict is the one doing the applying, and it’s pretty rare for liquidators to surrender fees to anyone, even if they’re not a direct rival. But when a potential claim involves pursuing a government, and that government…


Cullen Group: FEG on collision course with creditors

Liquidator Michael Caspaney may soon head to court to have a funding agreement with FEG ratified after creditors of Queensland construction firm Cullen Group Australia rejected the deal on the basis it would bankroll pursuit of sub-contractors who had received more than $4 million in preference payments. Readers of Insolvency News Online may recall that Caspaney was installed at the first meeting of creditors back…