A judge of the Supreme Court of Western Australia yesterday delivered a useful decision in respect of questions of indemnification and priority against assets when a voluntary administrator is appointed to a legal partnership.
In this case Worrells Perth principal Mervin Kitay had been appointed administrator of Dwyers Legal Pty Ltd, a law firm that previously traded as Dwyer Durack.
“To the extent that they are reasonably incurred, expenses incurred for the care, preservation and realisation of the Partnership property should be borne by that property.” Justice Jenni Hill.
In Dwyer Durack (A Firm); Ex Parte Mervyn Jonathan Kitay as administrator of Dwyer’s Legal Pty Ltd (Administrator Appointed) [2024] WASC 77 the judge recounts how after being appointed Kitay applied to the court for orders that he’d be acting properly “and would be justified in conducting the voluntary administration of the Partnership on the basis that he is entitled to an indemnity secured by equitable lien against the assets of the Partnership”.
Further the judge said the indemnity extended to those assets which include the proceeds and ongoing proceeds of realisation of those assets and that Kitay should…
