Davis-Jacenko v Roxy's Bootcamp Pty Limited (No 2)

The case of Davis-Jacenko v Roxy's Bootcamp Pty Limited (No 2) involved a dispute in the Federal Court of Australia concerning the winding up of a corporation on the just and equitable ground. The plaintiffs, Davis-Jacenko, sought to have the corporation, Roxy's Bootcamp Pty Limited, wound up due to an irretrievable breakdown in the relationship between the members. The case reached the court following the appointment of liquidators by consent of the parties.

The primary legal issue before the court was whether the breakdown in the relationship between the members of the corporation was sufficient to warrant its winding up on just and equitable grounds. Additionally, the court had to determine the appropriate order regarding costs, particularly whether indemnity costs should be awarded to the plaintiffs. The defendants argued that their conduct was not unreasonable and thus should not attract indemnity costs.

The court found that the relationship between the members had indeed deteriorated to the point where the just and equitable ground for winding up was satisfied. However, the court held that the defendants' conduct was not unreasonable enough to warrant indemnity costs. Instead, the court ordered costs on the ordinary basis, reflecting the overall conduct of the parties during the proceedings. This decision underscored the importance of the relationship between members in corporate disputes and the nuanced approach to awarding costs in such matters.