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ARTICLE · 02 APRIL 2013

Receivers’ Costs Under the Microscope - who is liable?

An update on an ongoing dispute between companies in the Westpoint Group.

AustraliaInsolvency/Bankruptcy/Re-Structuring

In our January Legal Update article, What Must Receivers Reveal, we reported on an ongoing dispute between companies in the Westpoint Group, and receivers appointed to those companies in 2006. The founder of the Westpoint Group, Mr Norm Carey, is trying to get the receivers to provide copies of their invoices and invoices for the legal work done by their lawyers, Corrs Chambers Westgarth, during the receivership.

Readers will no doubt recall that the Court of Appeal recently held that the receivers were required to provide the detailed invoices, subject to any claim for legal professional privilege (LPP). The Court found that insufficient evidence had been put forward to explain why the receivers were entitled to claim LPP, but decided that the receivers should have an opportunity to put forward further evidence.

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