JDM v Hodges (No 2)

In the case of JDM v Hodges (No 2), the court dealt with the administration and financial management of settlement funds payable to the applicant, JDM, who has impaired capacity. The dispute involved the administration and management fees to be paid by the second respondent to the trustee of the settlement funds. The primary issue before the court was whether the parties had agreed on the amount of the fees and, if so, what that amount was. Additionally, the court had to determine whether it should assess the fees and, if so, what the assessed amount should be. The court also considered the allocation of costs between the parties.

The court held that the parties had indeed agreed on the amount of the administration and management fees, which was $374,295.00. The court arrived at this conclusion by closely examining the communications between the parties and the context in which they were made. The court found that the parties had reached an agreement on the fees, and there was no genuine dispute regarding this amount. Therefore, the court did not need to assess the fees itself. Regarding the costs, the court considered the unsuccessful nature of the originating application due to a jurisdictional issue and the fact that the amended application was based almost entirely on work already performed for the originating application. The court determined that costs should not follow the event but should be assessed based on the work done for the amended application.

The court's orders included the appointment of an administrator for JDM, the payment of administration and management fees by the second respondent, and the payment of various costs between the parties. The court also outlined specific timelines for the transfer of funds and the preparation of a financial management plan. The orders reflect the court's determination on the administration fees and the allocation of costs, providing clarity and direction for the parties involved.