KPMG's Templeton wins appeal to have remuneration downgrade reviewed

KPMG partner Damian Templeton

IT'S taken 12 months but KPMG's Damian Templeton has - with  King & Wood Mallesons' help - overturned a September 2014 judgement rejecting his application for a review of an earlier determination slashing his and former partner Phil Hennessy's remuneration as receivers of the illegal Letten Schemes by $545,000.

Last Friday the Court of Appeal set aside a September 2014 judgement of Justice Michelle Gordon (now of the High Court) refusing Templeton and Hennessy's initial application to have the fee reduction reviewed. It also ordered that their application for a review be heard again by another judge.

SiN has paraphrased from the judgement, which you can read at: Damian John Templeton, Philip Arthur Hennessy and KPMG Australian Partnership v Australian Securities and Investments Commission.

In March 2014 Registrar Timothy Luxton fixed the receivers’ remuneration, costs and expenses for the period 1 January 2012 to 31 March 2013 at $3,764,738.39. This followed the filing on 17 June 2013 by the receivers of an interlocutory application seeking approval for their remuneration, costs and expenses for that period.

Their claim was into seven categories — Administration and Risk Management, Assets, Creditors, Investigations, Investors / Distribution, Statutory Obligations and Trade On. The total was $4,309,813.79