Hugh Charles Thomas as liquidator of Anne Lewis Pty Ltd (in liq) v Arthur Hughes Pty Ltd

The case of Hugh Charles Thomas as liquidator of Anne Lewis Pty Ltd (in liq) v Arthur Hughes Pty Ltd was heard in the Supreme Court of New South Wales. The liquidator of the company sought equitable compensation for costs incurred in bringing proceedings against the defendants, who were found to be in breach of fiduciary duty. The case revolved around two primary issues: the appropriate rate of interest on the compensation to be paid and the quantum of the equitable compensation for the liquidator’s remuneration.

The court had to determine whether the interest on the compensation should be calculated at the statutory rate provided for in section 100 of the Civil Procedure Act 2005 (NSW) or at the rate of interest that the company had received on the money held by it during the period of liquidation. Additionally, the court needed to decide whether the equitable compensation for the liquidator’s remuneration incurred in bringing the proceedings should be ordered and, if so, at what rate.

The court held that the equitable compensation for the liquidator’s remuneration should be calculated at the same rate of interest that the company had received on the money held by it during liquidation, rather than at the statutory rate. This decision was based on the principle that equitable compensation should reflect the actual loss suffered by the company. Furthermore, the court ordered the equitable compensation for the liquidator’s remuneration incurred in bringing the proceedings, considering the time and resources expended by the liquidator in pursuing the claim.

The court's final orders included the payment of interest on the compensation at the rate of interest received by the company on the money held by it during liquidation and the payment of equitable compensation for the liquidator’s remuneration incurred in bringing the proceedings.