Queensland Nickel Sales Pty Ltd v Park in his capacity as liquidator of Queensland Nickel Pty Ltd (in liq)

The appeal before the court involves Queensland Nickel Sales Pty Ltd (QNI) and Mr Park in his capacity as liquidator of Queensland Nickel Pty Ltd (in liquidation), who are the appellants, and the liquidators of QNI, referred to as the GPLs, and Vannin, who are the respondents. The primary dispute centres around the Mineralogy Claim Expenses and Liabilities, which encompass the funding premium and the remuneration and disbursements incurred by the GPLs under a litigation funding agreement dated 13 September 2016 between QNI and Vannin. The appellants contest the primary judge's determination that these expenses and liabilities were properly incurred and reasonable by ordinary commercial standards. The court's task was to determine whether the primary judge erred in his findings regarding the reasonableness of the funding premium and the propriety of the Mineralogy Claim Expenses and Liabilities, as well as whether the Settlement Deed precluded the appellants from challenging these expenses.

The court held that the primary judge did not err in his findings. Firstly, regarding the funding premium and Mineralogy Claim Expenses and Liabilities, the court found that the primary judge correctly held that the onus was on the appellants to prove that these were unreasonable by ordinary commercial standards. The court determined that the appellants failed to discharge this onus, thereby affirming the primary judge's conclusion that the funding premium and the expenses were reasonable. Secondly, concerning the Mineralogy Claim Expenses and Liabilities being properly incurred, the court found that the primary judge was correct in his reasoning that QNI, as the former trustee of the joint venture assets, retained obligations as a bare trustee which justified the expenses. The court also found that the Settlement Deed did not preclude the appellants from challenging these expenses, contrary to the primary judge's determination. The court's reasoning was grounded in the contractual and fiduciary obligations of QNI, as well as the legal framework governing the joint venture and the roles of the various parties involved.

The appeal was dismissed, and the appellants were ordered to pay the respondents' costs. The court's decision upholds the primary judge's findings and provides clarity on the issues of the reasonableness of the funding premium and the propriety of the Mineralogy Claim Expenses and Liabilities, as well as the effect of the Settlement Deed on the appellants' ability to challenge these expenses.