Funds management recovery

Serrao v Cornelius [2017] NSWCA 61 is another decision touching on the recovery of funds management costs.

The Court of Appeal noted that the amount proposed for approval in respect of funds management was about $24,500. The evidence suggested that the actual cost of funds management would be about $138,000.

Despite that discrepancy consent orders were made, apparently on pragmatic grounds, with the court commenting at [10]:

There is no dispute as to the methodology or the calculations, which on their face are orthodox and reasonable. Equally, it is clear that any attempt to litigate this component of the damages would rapidly generate legal costs of the same order of magnitude or more than the amount itself. In those circumstances, the settlement of the costs of fund management in the amount agreed between the parties is in the best interests of Mr Serrao.

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