Scott & Scott (No. 2)

In *Scott & Scott (No. 2)*, Austin J of the Family Court of Australia considered applications by an applicant receiver concerning the payment of a judgment debt owed to former receivers and the applicant's own fees and expenses. The dispute involved the use of funds held by a corporate trustee, E Pty Ltd, to satisfy a debt for which the respondents, a married couple, were personally liable. The applicant also sought orders regarding his own costs and the costs of the proceedings.

The court was required to determine whether it had the power to authorise or direct the use of funds held by E Pty Ltd to discharge a judgment debt owed personally by the respondents. Additionally, the court needed to consider the applicant's entitlement to recover his fees and expenses incurred during his receivership from the property of E Pty Ltd, and the assessment of the costs of and incidental to the proceedings.

Austin J reasoned that the court lacked the power to authorise or direct the use of funds held by E Pty Ltd to pay a judgment debt owed personally by the respondents, as the debt was not an obligation of the corporate trustee. The applicant's role was limited to managing E Pty Ltd's assets and paying its debts. However, the court found that the applicant was entitled to recover his approved fees and expenses from the property of E Pty Ltd, as he held an equitable lien over those assets and there was no impediment to him satisfying these approved costs.

The court ordered that the applicant's fees and expenses incurred between 16 June 2020 and 9 November 2020, assessed at $82,265 plus GST, could be recovered from the property of E Pty Ltd. The question of the applicant's costs of and incidental to the proceedings was reserved for four months. Otherwise, the applications filed by the applicant and the respondents were dismissed.