Xat Ky v Australvic Property Management Pty Ltd (No 2)

The matter of Xat Ky v Australvic Property Management Pty Ltd (No 2) involved the plaintiff, Xat Ky, who was seeking costs incurred during a winding-up proceeding. The defendant, Australvic Property Management Pty Ltd, was involved in the winding-up process, and several other entities, including T & G Welding and R & A Cab Co Pty Ltd, were supporting creditors. The case was heard in the Federal Court of Australia.

The legal issues at hand primarily revolved around the allocation of costs incurred by the plaintiff and other supporting creditors during the winding-up process. The plaintiff argued for reimbursement of costs on a party/party basis up to a certain date, and on an indemnity basis thereafter. Additionally, there were disputes regarding the costs of other supporting creditors, specifically T & G Welding and R & A Cab Co Pty Ltd.

The court, in its reasoning, proposed an order that aligned with the plaintiff's submissions. It proposed that the plaintiff's costs be taxed on a party/party basis up to a specific hearing date and on an indemnity basis thereafter. Furthermore, the court proposed that the plaintiff be entitled to reimbursement of costs from the security provided in a previous order. Regarding the other supporting creditors, the court proposed that their costs be taxed on a party/party basis up to the same hearing date and on an indemnity basis thereafter. The court also noted that no submissions were received concerning costs from creditors not professionally represented, and therefore, it did not propose to make any orders in relation to their possible disbursements.

The final orders included the reimbursement of the plaintiff's costs in accordance with the proposed order. ASIC's costs were to be taxed on a party/party basis, while Saxbys' costs were to be taxed on an indemnity basis. The costs of T & G Welding and R & A Cab Co Pty Ltd were to be taxed on a party/party basis up to the specified hearing date and on an indemnity basis thereafter.