SA Asset Management Corp v Sheahan

This case involved an appeal from a decision of a Judge of the Supreme Court of South Australia. The appeal was brought by the South Australian Asset Management Corporation (SAAMC) against the liquidators of Health and Life Care Limited (HLC). The issue at hand was whether SAAMC was entitled to take control of a legal action that HLC had initiated against Price Waterhouse, a firm of Chartered Accountants, and whether the Court should grant leave for SAAMC to resume control of the action. The appeal also involved a challenge to the order regarding the costs of the action. The Full Court of the Supreme Court of South Australia dismissed the appeal and cross-appeal, finding that the trial judge's decision was correct. The Court held that once the applicability of the charge was established, leave would be granted to the secured creditor to take control of the asset subject to orders necessary to deal with any matters affecting the orderly administration of the liquidation and subject to any orders required to protect the proper interests of the liquidator. The Court also found that the liquidators were not entitled to recover their costs from SAAMC, as they were the unsuccessful parties in the litigation.