Just when you thought trust company liquidation law was finally settled by two superior court cases this year, Justice Brereton has another bite of the cherry.
The liquidator applied to Justice Brereton seeking declarations that the trust assets:
(1) were to be treated, in effect, as company assets via the right of indemnity as corporate trustee;
(2) could be utilised to pay the Liquidators remuneration and costs; and
(3) were to be distributed amongst all creditors (either on an equal basis (pari passu) or via the section 556 Corps Act priorities).
Pretty normal directions.
On the point about how the monies should be distributed to creditors, Justice Brereton had his bite.
The liquidator actually sought a direction for pari passu (equal distribution) to be preferred, relying upon the Independent Contractor Services case.
The real clincher was where Justice Brereton acknowledges that the superior court decisions may go against the principles in Independent Contractor, but as one of those cases may soon be heard by the High Court, he decided to suspend giving the distribution direction until the High Court says if it will even hear the appeal.
That may not be until September 2018.