Tuesday February 17, 2015 – On December 17, 2014 the Supreme Court of New South Wales ordered that Woodlawn Capital Pty Ltd (Woodlawn) release AU$20million to Motor Vehicle Insurance Limited (MVIL) as part of the Court’s earlier judgment made in October 2014.
In accordance with the court ruling, Woodlawn transferred AU$20million to Gadens Lawyers Trust Account in PNG in December and today PGK41.9million is finally being released to MVIL. Gadens Law Firm has provided legal representation for MVIL in the matter since proceedings were initiated against Woodlawn in 2011.
This is the latest outcome in the long-running court case between the parties, who are battling over AU$26million held in bank accounts managed by Woodlawn that has been “frozen” by the Court since March 20, 2012.
The case has been pursued by the Independent Public Business Corporation (IPBC) on behalf of MVIL since July 2011 as MVIL is subject to regulation under the Independent Public Business Corporation of Papua New Guinea Act 2002 (PNG).
The matter contended in the Supreme Court of New South Wales goes back to July 2009 when MVIL transferred 96 million kina (about AU$43million) (the Fund) to Woodlawn to invest and manage the Fund with the aim of growing the Fund over time.
This initial transaction is also the subject of a challenge by IPBC in both the National and Supreme Court in Papua New Guinea. As such, neither IPBC nor MVIL are prepared to make further comment on the matter at this stage.
In relation to the matter in Australia, the IPBC Board has unanimously approved legal action against those responsible for losses incurred in the transaction and the establishment of the Fund.
In regard to the Supreme Court of New South Wales ruling there are a number of outstanding issues that the Court will resolve when the matter resumes on March 30, 2015. Those issues include whether MVIL will be awarded interest on the Fund since November 17, 2011 and whether MVIL will be able to recover its legal costs of the proceedings from Woodlawn.
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