Re Gunns Plantations Ltd (No 3)

IN THE SUPREME COURT OF VICTORIA

Not Restricted

AT MELBOURNE

COMMERCIAL COURT
CORPORATIONS LIST

S CI 2013 2095

IN THE MATTER OF GUNNS PLANTATIONS LIMITED (ADMINISTRATORS APPOINTED) (RECEIVERS & MANAGERS APPOINTED) (ACN 091 232 209) in its capacity as the responsible entity of the managed investment schemes listed in Schedule 1

DANIEL MATHEW BRYANT, IAN MENZIES CARSON and CRAIG DAVID CROSBIE (in their capacities as joint and several Voluntary Administrators of GUNNS PLANTATIONS LIMITED (ADMINISTRATORS APPOINTED) (RECEIVERS & MANAGERS APPOINTED) (ACN 091 232 209))

Liquidators

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JUDGE:	Gardiner AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	23 February 2017
DATE OF JUDGMENT:	19 December 2017
CASE MAY BE CITED AS:	Re Gunns Plantations Ltd (No 3)
MEDIUM NEUTRAL CITATION:	[2017] VSC 777

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CORPORATIONS – Application by liquidators of managed investment schemes for further directions pursuant to s 511 of the Corporations Act 2001 (Cth) for entitlement to remuneration, costs and expenses including those that are expected to be incurred prior to conclusion of liquidation – Directions sought under s 50 of the Evidence Act 2008 (Vic) that evidence be given in summary form.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiffs	Dr O Bigos	Arnold Bloch Leibler
Mr T Burdon and Mr Musgrave appeared in person

TABLE OF CONTENTS

Introduction......................................................................................................................................... 1

Summary of activities carried out by the liquidators in the Relevant Period........................ 8

Great Southern Schemes – sale related activities..................................................................... 8
Gunns Woodlot Schemes – sale related activities................................................................... 8
Tasmanian Forestry Estate sale......................................................................................... 8
Tumbarumba Estate sale.................................................................................................... 9
Tumbarumba Estate - non-sale related activities......................................................... 10
Australian Forestry Plantation sale completion........................................................... 11
Forestry Tasmania settlement.......................................................................................... 11

Third Party Landowner activities............................................................................................. 12
Sale related activities in relation to the Schemes.......................................................... 12
Non‑sale related activities in relation to the Schemes................................................. 12

Distribution tasks........................................................................................................................ 13
Income Tax and GST advice and class rulings....................................................................... 13
Resolution of Custodian accounts............................................................................................ 18
General Scheme activities.......................................................................................................... 19
Management of the Schemes............................................................................................ 19
Second Liquidation Costs Application and Third Liquidation Costs Application 19
Stakeholder liaison............................................................................................................ 20
Scheme wind-up................................................................................................................ 20
Liaising with ASIC............................................................................................................. 20
Other administrative Scheme related activities............................................................ 21

Assessment of activities carried out by the liquidators in the Relevant Period................... 21

Analysis of expenditure and remuneration................................................................................ 21

The Liquidators’ allocation methodology.............................................................................. 21
Summary spreadsheet for the Relevant Period...................................................................... 24
The claim for remuneration, disbursements, legal costs and third party costs....... 27
Liquidators’ remuneration............................................................................................... 28
Liquidators’ disbursements............................................................................................. 33
Legal costs.......................................................................................................................... 34
Third party costs................................................................................................................ 37
Claim for Future Costs...................................................................................................... 37
Liquidators’ remuneration............................................................................................... 41
Liquidators’ disbursements............................................................................................. 43
Legal costs.......................................................................................................................... 44
Third party costs................................................................................................................ 44
Allocation............................................................................................................................ 44

HIS HONOUR:

Introduction

On 20 March 2015, I delivered reasons[1] for orders that I made in deciding an application made by the first plaintiffs by interlocutory process dated 29 September 2014 (the ‘previous application’). The previous application sought directions and orders in relation to the costs, expenses and remuneration which the first plaintiffs (‘the liquidators’) had incurred as liquidators of Gunns Plantations Limited (‘GPL’) in its capacity as responsible entity of the managed investment schemes known as the Gunns Woodlot Schemes and the Great…

CaseChat Overview and Summary

In this case, the liquidators of Gunns Plantations Limited applied to the court for further directions regarding the entitlement to remuneration, costs, and expenses in the liquidation of managed investment schemes. The matter was heard in the Supreme Court of Victoria. The liquidators sought to be compensated for the remuneration, costs, and expenses that they anticipated incurring prior to the conclusion of the liquidation, including any future costs and expenses.

The central legal issues were whether the liquidators were entitled to remuneration and expenses for work done prior to the conclusion of the liquidation and whether they could be granted an order under the Evidence Act 2008 (Vic) for the evidence to be given in summary form. The liquidators argued that they were entitled to be compensated for the work they had done and anticipated doing, and that they should be able to give evidence in summary form to avoid unnecessary expense and delay.

The court found that the liquidators were entitled to remuneration and expenses for the work they had done and anticipated doing, and that the order for evidence to be given in summary form was appropriate to avoid unnecessary expense and delay. The court considered that the liquidators had a legitimate interest in being compensated for their work, and that the summary form of evidence was an efficient way to resolve the matter. The court granted the liquidators' application and made the appropriate orders.

The court's orders included that the liquidators be entitled to remuneration, costs, and expenses for work done and anticipated to be done, and that evidence be given in summary form. The court also made directions for the management of the liquidation proceedings, including the appointment of a committee of inspection and the provision of regular reports to the court. The orders reflected the court's consideration of the liquidators' legitimate interests and the need for efficient management of the liquidation proceedings.

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