Hillcrest claims up to $1m in Meadow Springs win

Hillcrest Litigation Services Ltd has announced that it could receive up to $1 million after a Federal Court success in funding a legal case involving Meadow Springs Fairway Resort Ltd and finance group Knightsbridge Managed funds Ltd.

Below is the full announcement:

Hillcrest Litigation Services Limited ("HLS") is pleased to announce that its funded client has been
successful in the Meadow Springs case under a judgment of the Federal Court delivered on 9 April
2008.
Previously, on 2 February 2007, HLS announced that it had entered into a litigation funding
agreement with Mr John Carrello, as receiver and manager of Meadow Springs Fairway Resort Ltd
(In Liquidation) in relation to its action against a firm of valuers in Federal Court Action WAD 126 of
2004.
Subsequently, in July 2007, the action was settled with the consequence that the Meadow Springs
liquidator was put in possession of a fund of $6,400,000 from the settlement proceeds with that fund
being available for distribution to interested parties, subject to the directions of the Federal Court.
A number of parties claimed an entitlement to parts of the fund; including Mr Carrello, as receiver
and manager of Knightsbridge Managed funds Limited (In Liquidation) ("Knightsbridge"), funded by
HLS. The competing claims were argued in Federal Court Action WAD 150 of 2007 in a 4 day
hearing in October 2007.
In its reasons for judgment, the Court held that Knightsbridge is a secured creditor of Meadow
Springs and that it (and another secured creditor) are entitled to payments from the fund in priority the
amounts claimed by the other interested parties.
The exact quantum of Knightsbridge's entitlement remains to be determined, by agreement or further
court order. However, at this stage, HLS anticipates that it will receive an amount in the region of
$900,000 to $1,000,000 in reimbursement of costs and its profit component under its funding
agreement.