Financial Markets Authority v Ross

The Financial Markets Authority filed an application seeking payment of outstanding legal fees from the defendants, which include David Ross, Ross Asset Management Limited, and others. The defendants, including Mr. Ross, argued that the fees charged by Chapman Tripp, a law firm, were reasonable and should be paid from funds currently held in the firm's trust account. The defendants also argued that the fees were reasonably incurred in respect of the Authority's investigation or consequential proceedings, as allowed by existing court orders.

The court was required to decide whether the fees charged by Chapman Tripp were reasonable and whether they fell within the scope of the existing court orders permitting the payment of legal fees. The court had to consider the scope of the legal work undertaken and whether it was within the bounds of the investigation or consequential proceedings. Additionally, the court needed to determine if the Deed of Settlement's requirement for a Law Society representative to assess the fees was complied with and whether the assessment was reasonable.

The court found that Kenneth Johnston, a barrister, had conducted a thorough review of the fees and determined that they were reasonable. The court accepted Mr. Johnston's findings and was satisfied that the fees charged were within the scope of the existing court orders. The Financial Markets Authority did not oppose the application, and the receivers and liquidators, who were initially concerned about the scope of the legal work, did not oppose the application after receiving confirmation that the fees were within the scope of the orders. Consequently, the court ruled in favor of the defendants and ordered the payment of the legal fees from the funds held in Chapman Tripp's trust account.

The court ordered that the sum of $217,904.46 together with interest be paid to Chapman Tripp from the trust account in the names of that firm, G L Turkington, and Ross Asset Management Limited (in liquidation).