“Who pays the legal fees for the property sale and the partnership windup?”
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A recent, short decision concerned a s 66G application for the sale of a property and a winding up of the partnership that owned it: [2]
In 1991 the partnership was formed between a sibling, some companies, and the deceased. The parties to the proceedings were the partners and some of the deceased’s children: [3]
In 2022 the deceased died.
At the time of the hearing, the deceased’s stake in the property was held by the deceased’s executors: [4]
An accusation of “foot-dragging” on the part of the Ds coloured the Ps’ approach: [8]
The Ps commenced proceedings seeking the appointment of s 66G trustees and for the winding up of the partnership: [2]
The parties reached agreement that the orders sought ought to be made: [5]
Unresolved was the question of legal costs: [6]
The Ps took the view that the Ds’ foot-dragging conduct was unreasonable, thereby inviting the litigation. Based on this – the Ps said – the Ps should have their costs from residue but the Ds should not: [8]
The Ds said the normal position ought to be maintained, that their conduct did not warrant a departure from it (noting the negotiations engaged in over the course of the matter): [9]
The Court considered the usual position as to costs in a s 66G application and a partnership dissolution – absent an alternative order the parties’ costs be paid from residue: [10] – [12]
Having considered the evidence tendered by both parties detailing their interactions over the course of years the Court was not satisfied that the usual costs order ought to be departed from: [14]
Following some argument about a suggestion that proceeds ought to be paid into a controlled monies account, the Court ordered that the proceeds ought to be paid into Court: [16] – [21]
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