Richards v Macquarie Bank Limited

AND: MACQUARIE BANK LIMITED ABN 46 008 583 542

STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) ACN 064 804 691

JUDGE: LOGAN J DATE: 17 MARCH 2015 PLACE: BRISBANE

REASONS FOR JUDGMENT (REVISED FROM TRANSCRIPT) 1 This is a further application pursuant to s 33V(2) of the Federal Court of Australia Act 1976 (Cth), and clauses 45A and 46 of what is known as the "Second Settlement Scheme", approved by the court on 20 December 2013, for the approval of administrators' costs, as well as fees and disbursements, notably legal expenses in respect of the administration of that scheme. 2 These reasons for judgment must be read in conjunction with those given by me in respect of the approval of the Second Settlement Scheme on 13 December 2013 (see: Richards v Macquarie Bank Limited (No 5) [2013] FCA 1442). The Second Settlement Scheme relates to the compromise of proceedings in the form of a class action as between Ms Richards and Macquarie Bank. Ms Richards and other members of the class were members of the clientele of the now collapsed Storm Financial Limited and also of Macquarie Bank. 3 The application has been notified to the Australian Securities and Investment Commission (the Commission). The Commission has chosen not to appear today. I take that as indicative that the Commission does not see in the proposed orders any particular subject upon which it would seek, as it has in the past quite properly, to be heard in the public interest and in respect of its general responsibilities in relation to the administration of the Corporations Act 2001 (Cth). 4 The fees and charges that are promoted for approval strike me as reasonable. The legal expenses concerned have been vetted by Mr Mazzeo, who has the requisite independence to assist the court on that subject. It is a noteworthy feature of the administration of the Second Settlement Scheme that it has been conducted in a way which, on present estimates, will yield a higher return, namely 29.79 cents in the dollar of the loss assessed under the scheme than that which was anticipated immediately prior to the approval of the Second Settlement Scheme. The anticipated return at that stage was about 28 cents in the dollar. 5 If need be, this matter can be returned for finalisation under liberty to apply. For the present, the prospect is that the fees and charges approved will take the administration of the scheme up to its finalisation. 6 For these reasons, I make orders in terms of the draft which I have signed and placed with the papers. I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Logan.