Hodges v Waters (No 6)
[2014] FCA 1343
•8 December 2014
FEDERAL COURT OF AUSTRALIA
Hodges v Waters (No 6) [2014] FCA 1343
Citation: Hodges v Waters (No 6) [2014] FCA 1343 Parties: CHARLES HODGES & MARK HODGES AS TRUSTEES OF THE CHARLES HODGES SUPERANNUATION FUND v ANDREA JANE WATERS, KPMG, WELLINGTON INVESTMENT MANAGEMENT LIMITED, OCTAVIAR LIMITED (ADMINISTRATOR APPOINTED), GUY HUTCHINGS, JOHN ARTHUR WHATELEY, JACK SIMON DIAMOND, CRAIG ROBERT WHITE, DEBORAH BEALE, STEVEN KRIS KYLING, STUART ROBERTSON PRICE, MICHAEL GORDON HISCOCK, MICHAEL CHRISTODOULOU KING, PAUL JOSEPH MANKA, FERNANDO ESTEBAN, RAYMOND KELLERMAN, DAVID MARK ANDERSON, OCTAVIAR LIMITED (IN LIQUIDATION) ACN 107 863 390 and OCTAVIAR ADMINISTRATION PTY LTD (IN LIQUIDATION) ACN 101 069 390
File number: NSD 324 of 2009 Judge: PERRAM J Date of judgment: 8 December 2014 Legislation: Federal Court of Australia Act 1976 (Cth) s 33V Date of hearing: 8 December 2014 Place: Sydney Division: GENERAL DIVISION Category: No catchwords Number of paragraphs: 2 Counsel for the Applicants: Mr MBJ Lee SC and Mr WAD Edwards Solicitor for the Applicants: Johnson Winter & Slattery Lawyers Counsel for the First and Second Respondents: Mr J Lockhart SC and Mr JA Arnott
Solicitor for the First and Second Respondents: Allens
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
NSD 324 of 2009
BETWEEN: CHARLES HODGES & MARK HODGES AS TRUSTEES OF THE CHARLES HODGES SUPERANNUATION FUND
ApplicantAND: ANDREA JANE WATERS
First RespondentKPMG
Second RespondentWELLINGTON INVESTMENT MANAGEMENT LIMITED
Third RespondentOCTAVIAR LIMITED (ADMINISTRATOR APPOINTED)
Fourth RespondentGUY HUTCHINGS
Fifth RespondentJOHN ARTHUR WHATELEY
Sixth RespondentJACK SIMON DIAMOND
Seventh RespondentCRAIG ROBERT WHITE
Eighth RespondentDEBORAH BEALE
Ninth RespondentSTEVEN KRIS KYLING
Tenth RespondentSTUART ROBERTSON PRICE
Eleventh RespondentMICHAEL GORDON HISCOCK
Twelfth RespondentMICHAEL CHRISTODOULOU KING
Thirteenth RespondentPAUL JOSEPH MANKA
Fourteenth RespondentFERNANDO ESTEBAN
Sixteenth RespondentRAYMOND KELLERMAN
Seventeenth RespondentDAVID MARK ANDERSON
Eighteenth RespondentOCTAVIAR LIMITED (IN LIQUIDATION) ACN 107 863 390
Nineteenth RespondentOCTAVIAR ADMINISTRATION PTY LTD (IN LIQUIDATION) ACN 101 069 390
Twentieth Respondent
JUDGE:
PERRAM J
DATE OF ORDER:
8 DECEMBER 2014
WHERE MADE:
SYDNEY
THE COURT ORDERS THAT:
1.Pursuant to sections 33V and 33ZF of the Federal Court of Australia Act 1976 (Cth) (the Act), the Court approves the settlement of the proceedings against the first and second respondents (KPMG Parties) on the terms:
a.set out in the confidential Deed of Settlement executed by the Applicants, the Respondents, Wellington Capital Limited, and IMF Bentham Limited on 18 August 2014 (Deed of Settlement), being Confidential Exhibit RGJ-5 to the affidavit of Robert Guy Johnston sworn on 21 August 2014; and
b.set out in the Settlement Distribution Scheme contained in Confidential Exhibit RGJ-8 to the affidavit of Robert Guy Johnston sworn on 4 December 2014.
2.Pursuant to section 33ZF of the Act, the Group Members in the schedule annexed to these orders are:
a.deemed to have registered a claim in this proceeding and to be entitled to receive a distribution from any amount agreed in settlement of the proceeding; and
b.to be included in a Final List of Registered Group Members which is to be filed in the Court by 9 December 2014, in an envelope marked “Confidential Final List of Registered Group Members – Not to be opened without leave of the Court or a Judge” with that list to supersede the List of Registered Group Members filed with the Court on 22 October 2014.
3.Pursuant to section 33ZF of the Act, or otherwise, Robert Johnston and Robert Wyld of Johnson Winter & Slattery be appointed as Administrators of the Settlement Distribution Scheme to act in accordance with the rules of the Settlement Distribution Scheme.
4.Pursuant to section 33ZF of the Act, the amount of $23,600 to be paid from the Settlement Sum to the Applicant, Charles Hodges, in his personal capacity, by the Administrators of the Settlement Distribution Scheme, in addition to any payment to be made to Charles Hodges as trustee of the Charles Hodges Superannuation Fund in accordance with the terms of the Settlement Deed and the Settlement Distribution Scheme.
5.Pursuant to section 33ZF of the Act, or otherwise, the Court authorises the Applicants nunc pro tunc on behalf of the Group Members as defined in paragraph 12 of the Further Amended Statement of Claim filed in the proceeding and dated 24 June 2013, other than those who have opted out of the proceeding pursuant to section 33J of the Act as of 4pm on 7 May 2014 (Group Members) to enter into and give effect to the Deed of Settlement and the transactions contemplated thereby for and on behalf of those Group Members.
6.Pursuant to section 33ZB and section 33ZF of the Act, the persons affected and bound by orders 1 to 4 are the Applicants, the KPMG Parties and the Group Members.
7.Robert Johnston and Robert Wyld of Johnson Winter & Slattery have liberty to apply for directions in connection with the Settlement Distribution Scheme.
8.Until further order, on the grounds that it is necessary to prevent prejudice to the proper administration of justice, the following affidavits, exhibits and annexures and the contents therefore be ordered confidential within the meaning of regulation 2.32(1)(b) of the Federal Court Rules 2011 and their publication and disclosure be restricted within the meaning of section 37AF(1)(b)(i) of the Act in accordance with order 9 herein:
a.the documents which comprise Confidential Exhibit RGJ-8 to the affidavit of Robert Guy Johnston sworn 4 December 2014,
and not be disclosed to any person other than by order of a Judge of the Court.
9.To give effect to order 8, the affidavits, exhibits and annexures referred to in that order are to remain on the Court file in sealed envelope(s) marked “Confidential Affidavit – Not to be Opened Except by Direction of a Judge of the Court”.
10.There be no order as to costs in respect of the application under section 33V of the Act on 8 December 2014.
Note:Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
SCHEDULE OF ADDITIONAL
REGISTRANTS
NAME
UNITS
OMITTED REGISTRANTS
1
MARGARET MARY PROUTING
20,000
2
LEONARD A COLE & ESTHER FROSTT <CLAFE SUPERANNUATION FUND A/C>
47,919
3
MISS E R VANOLINI
4,916.00
4
PROF AINSLIE GLENISTER ROSS SHEIL
315,493.59
5
MISS LEAH CLAIRE ROBERTSON
19,566.44
6
MR ROBERT JOSEPH PEREIRA
18,392.31
7
Estate of Elizabeth Davis
209,044.14
635,331.48
ADDITIONAL LATE REGISTRANTS
1
R G & T M Hall ATF Hall R & T Super Fund
5,000
2
MISS REECHA GOGNA
5,661
3
MR DAVID STANDVEN EDDINGTON
5,669
4
MISS P M & MRS A HARWOOD ATF HARWOOD SUPER FUND
10,000
5
SAGIS CONSULTING PTY LTD <SAGIS SUPERANNUATION FUND A/C>
10,000
6
MS LYNETTE ALICE ORCHARD
10,000
7
JASON FEY & ROBYN JANE HARWOOD <THE ROBYN & JASON SUPER FUND A/C>
10,000
8
MS MARGARET JEAN LOUGHREY
10,000
9
MR SAMUEL ERIC MARRIOTT & MRS JEANETTE ANNE MARRIOTT
10,310
10
Michael Charles Harding
10,353
11
MR KEITH SHORLAND AND MRS MARJORIE MEREDITH SHORLAND
10,643
12
DR G FELETTI
11,399
13
ELISABETH MUNRO ATF THOMAS, GEORGIA, ADRIENNE & LEWIS MUNRO
11,914
14
WATERBRIDGE INVESTMENTS PTY LTD <THE BENNETT SUPER FUND A/C>
12,074
15
Mr Robert Charles Ferris
13,302
16
MRS JUNE LOUISE OOI
14,598
17
MR P J & MRS J O GORMLEY
14,758
18
MRS ALISON LEA TARRANT
17,000
19
MS TANIA SHERWOOD
18,971
20
WALSH ASSOCIATES PTY LTD STAFF SUPER FUND
20,000
21
MRS MARY BLOOMFIELD & MISS CATHERINE BLOOMFIELD <BLOOMFIELD M SUPERANNUATION FUND A/C>
20,000
22
F H PITMAN & CO PTY LTD <F H PITMAN & CO PTY LTD SUPERANNUATION FUND A/C>
20,000
23
MS Lynette Reeves
20,000
24
MACQUARIE UNIVERSITY SINGERS
20,000
25
MR NORMAN L YARMOUTH AND MRS BEVERLEY ANNE YARMOUTH
22,282
26
MRS LISA RENEE KNABE
22,580
27
MR DAVID ALEXANDER SALAMY & MRS LINDA MARGARET SALAMY <L & A & D SALAMY FAMILY TRUST A/C>
23,000
28
MR IVANO MELOSI <IVANO MELOSI INVESTMENTS SUPERANNUATION FUND A/C>
23,163
29
MISS MEGHA GOGNA
23,405
30
MR A W & MRS R I FOX
25,000
31
MR E D & MRS M NORTH
25,000
32
Mrs Denise Forsyth
25,250
33
MR JEFFREY CHIVELL & MRS SANDRA CHIVELL ATF CHIVELL SUPER FUND A/C
26,807
34
MRS KRISHNA GOGNA
26,878
35
MS GILLIAN THOMAS
27,345
36
MRS A FELETTI
27,848
37
MS P DRURY <THE PJD SUPERANNUATION FUND>
28,101
38
MRS REINE MARIE MARLENE LAJOIE
30,000
39
MR KENNETH ROGER WEBSTER AND MRS HELEN JOY WEBSTER
30,080
40
MR WALTER MICALLEF AND MRS ANGELA MICALLEF
32,963
41
MR HARRIE GEORGE FURNER & MRS COLEEN ANNETTE FURNER
33,381
42
MRS VICTORIA MARY MATTHEWS
34,430
43
MR RICHARD ALAN HARTZER AND MRS ANNE JOY HARTZER
34,715
44
MR GREG FLOWER & MRS MAURITA FLOWER <FLOWER FAMILY SUPERANNUATION FUND A/C>
36,706
45
MRS KAY WEEDEN
40,000
46
MRS PAULINE STRAIN
40,000
47
MR A C HANNAN
40,300
48
MR JOHN MICHAEL CAREY
41,705
49
MR CHARLES JOSEPH VASSALLO
45,000
50
MR RAYMOND ARTHUR SELKRIG & MRS ETHEL SELKRIG
45,000
51
MS SUZANNE CURRAN & MR ROBERT CATON <CURRAN CATON SUPERANNUATION FUND A/C>
45,000
52
LEIGH DARCY NEVETT & ALLISON JOANNE KAY <THE NEVETTS INTERNATIONAL SUPERANNUATION FUND A/C>
45,075
53
MR M S GODLEMAN
49,447
54
Mrs Elaine Barbara Campigli
50,000
55
MR WILLIAM MANTLE & MRS VERONICA MANTLE
50,000
56
MR IAN NEIL ARMSTRONG & MRS LYNNETTE JOY ARMSTRONG <ARMSTRONG FAMILY SUPERANNUATION FUND A/C>
50,000
57
MR GLEN IAN BARTEL & MRS JUDITH ANNE BARTEL <BARTEL SUPERANNUATION FUND A/C>
50,000
58
Estate of Estate of Shirley Mackey
50,500
59
MRS SUSAN TEISSL
50,500
60
MR NEIL ROBSON
52,220
61
G & P ROSE NOMINEES PTY LTD
62,351
62
JAMES DIXON MACKENZIE & DIANNE MARIA MACKENZIE <THE MACKENZIE FAMILY SUPER FUND A/C>
66,000
63
MR MICHAEL CHARLES SKOLNIK
69,102
64
Estate of Andrew John Kelly
69,332
65
David & Jennifer Larkin ATF LARGOONA PTY LTD
70,700
66
MRS REGINA HORNIBROOK
72,062
67
K & L JONES PTY LTD<K & L JONES PTY LTD SUPERANNUATION FUND A/C>
80,183
68
MR KEVIN LITTLE & MRS EILEEN LITTLE <LITTLE SUPERANUUATION FUND A/C>
80,320
69
MR MAXWELL WARD & MRS DORIS WARD <SWING CITY SUPERANNUATION FUND A/C>
85,000
70
MR LEWIS PETER POTTER & MRS SUSAN ANNE POTTER ATF FILO SUPERANNUATION FUND A/C
100,000
71
MR PETER MATTHEWS AND MRS SUSAN VIDA
100,000
72
THE PEGLER FAMILY SUPER FUND A/C
100,000
73
WHEELER FAMILY SUPERANNUATION FUND A/C
110,543
74
MR GERALD BROWN <TRAWALLA SUPERANNUATION FUND A/C>
122,306
75
Estate of Margaret Lindsay Williams
136,000
76
ROYNAUR INVESTMENTS PTY LTD
150,000
77
MR MICHAEL JOHN FRASER ATF TYRA SUPERANNUATION FUND A/C
181,602
78
MR MARINUS MARIA BULLE & MS ROSEMARY JEAN BULLE & MR MICHAEL JAMES BULLE <THE BULLE SUPER FUND A/C>
201,400
79
MR KENNETH MCCALLUM <THE ISLE OF MULL SUPER FUND A/C>
209,777
80
MISS SHEENA DOCHERTY
328,172
81
MR SCOTT BEUZEVILLE & MRS LINDA BEUZEVILLE <BEUZEVILLE RETIREMENT FUND A/C>
28,331
82
ESTATE OF R G BILSON
11,705
83
MS GAURI GOGNA
14,873
84
MRS ALISON MARGARET KAY
100,000
85
MR T A MURPHY
27,504
86
ESTATE OF GLADYS ELLEN HARRIS
770,000
87
MR LESLIE JOHN PEARSON & MRS JANICE PEARSON
10,000
88
ESTATE OF MRS ANNE LILLIAN DUFF
10,000
89
MR JOSEPH MAXWELL KILPATRICK
75,000
90
MRS LINDA REBECCA CHALMERS
10,657
91
MRS EDNA LORRAINE HARDER
6,705
92
MR MARK JOSEPH DUGGAN
63,782
93
MRS HELEN MARGARET DAVIES
30,000
94
P L & E KING PTY LTD <KING FAMILY SUPERANNUATION FUND A/C>
40,000
95
MR ROLAND ANGOOD & MRS PATRICIA ANNE ANGOOD <LAKE SUPERANNUATION FUND A/C>
10,136
96
MR D S RACE
8,000
97
MRS JOAN LITTLE & MR GREGORY LITTLE <ESTATE OF PERCY CURSON A/C>
150,000
98
MR BARRY FRANCIS AUSTIN AND MRS EDITH KATHLEEN MISSINGHAM-AUSTIN
15,164
99
MS MARINA CAO
5,000
100
MR GRAEME PETER MARKER
86885
101
Estate of Iris Evelyn Kabisch
20660
102
MR J CATANIA
19536
103
MRS BLANCHE TOOHEY
75000
5,599,125
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
NSD 324 of 2009
BETWEEN: CHARLES HODGES & MARK HODGES AS TRUSTEES OF THE CHARLES HODGES SUPERANNUATION FUND
ApplicantAND: ANDREA JANE WATERS
First RespondentKPMG
Second RespondentWELLINGTON INVESTMENT MANAGEMENT LIMITED
Third RespondentOCTAVIAR LIMITED (ADMINISTRATOR APPOINTED)
Fourth RespondentGUY HUTCHINGS
Fifth RespondentJOHN ARTHUR WHATELEY
Sixth RespondentJACK SIMON DIAMOND
Seventh RespondentCRAIG ROBERT WHITE
Eighth RespondentDEBORAH BEALE
Ninth RespondentSTEVEN KRIS KYLING
Tenth RespondentSTUART ROBERTSON PRICE
Eleventh RespondentMICHAEL GORDON HISCOCK
Twelfth RespondentMICHAEL CHRISTODOULOU KING
Thirteenth RespondentPAUL JOSEPH MANKA
Fourteenth RespondentFERNANDO ESTEBAN
Sixteenth RespondentRAYMOND KELLERMAN
Seventeenth RespondentDAVID MARK ANDERSON
Eighteenth RespondentOCTAVIAR LIMITED (IN LIQUIDATION) ACN 107 863 390
Nineteenth RespondentOCTAVIAR ADMINISTRATION PTY LTD (IN LIQUIDATION) ACN 101 069 390
Twentieth Respondent
JUDGE:
PERRAM J
DATE:
8 DECEMBER 2014
PLACE:
SYDNEY
REASONS FOR JUDGMENT
This is an application pursuant to section 33V of the Federal Court of Australia Act 1976 (Cth) seeking the approval of the Court to a settlement of this representative proceeding. This litigation has been before the Federal Court for over five years now and is quite old. It involves large numbers of class members and it is, to say the very least, complex. The class members include many people who are quite elderly, and indeed many have already died before a termination has been achieved of this litigation.
Many will be disappointed by the size of the settlement which I propose to approve in a few moments, but approve it I propose to do. Because of the significance of the reasons for my taking this action being transparent, I will publish full reasons explaining why I have approved the matter but not until early February next year. I am conscious that people will be interested to know what those reasons are. I am presently prevented from producing those reasons before that time by the volume of the Court’s current work.
I certify that the preceding two (2) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Perram. Associate:
Dated: 11 December 2014
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