img_6-1.jpg
Antony Davies had originally been asked to pay more than Aus$27,000 (£15,255) for the return of his toy collection consigned to Mossgreen.

You have 2 more free articles remaining

Administrator BDO was accused of “intermeddling” by charging fees to consignors of items that were either unsold or awaiting sale at the time Mossgreen went into administration in December.

Consignors had been asked to pay a Aus$353.20 (£200) collection fee per item stored.

However, federal court judge Justice Nye Perram ruled this was not legal.

“The administrators were intermeddling in other people’s goods in circumstances where they had not been invited to do so, were not performing their statutory functions and had not been appointed receivers,” he said. “Accordingly, they are not justified in requiring the consignors to pay a levy for the return of their goods.”

Collector Antony Davies, a consignor who had originally been asked to pay over Aus$27,000 (£15,255) for the return of his toy collection, said: “The administrators of Mossgreen, BDO, acted appallingly in applying a levy to property that was not theirs.

“It is a relief for many that the court has now overturned their actions. It is an important legal precedent and one that should prevail should such difficult circumstances occur again.”

Mossgreen had more than 10,000 items on consignment at four sites in Victoria and one in New South Wales.

BDO had previously said the charges were “to meet the reasonable costs of identifying, preserving, maintaining and facilitating the return of the consigned goods”.

BDO Australia has seven days following the ruling on April 9 to respond to the court.

In a statement sent to ATG, the firm said: “We are currently considering options in relation to the Federal Court judgment and the steps that now need to be taken to protect the interests of creditors.”