7Steel Building Solutions Pty Ltd v Wright

Case [2011] FCA 328


FEDERAL COURT OF AUSTRALIA

7Steel Building Solutions Pty Ltd v Wright [2011] FCA 328

Citation: 7Steel Building Solutions Pty Ltd v Wright [2011] FCA 328
Parties: 7STEEL BUILDING SOLUTIONS PTY LTD (ACN 122 413 503) v JASON DEAN WRIGHT AND ANOR
File number: NSD 238 of 2011
Judge: FLICK J
Date of judgment: 7 April 2011
Catchwords: BANKRUPTCY – leave to continue Supreme Court proceedings – complex facts and law – the involvement of other parties – no need to determine if leave is required – leave granted
Legislation: Bankruptcy Act1966 (Cth) s 58(3)(b)
Cases cited: Allanson v Midland Credit Ltd (1977) 30 FLR 108, considered
Coventry v Charter Pacific Corporation Ltd [2005] HCA 67, 227 CLR 234, considered
Done v Financial Wisdom Ltd [2008] FCA 1706, cited
Gertig v Davies [2003] SASC 86, 85 SASR 226, cited
Lovell v Penkin [2008] FCA 637, 101 ALD 335, cited
McMaster, Re; Ex parte McMaster (1991) 33 FCR 70, considered
Melnik v Melnik [2005] FCAFC 160, 144 FCR 141, cited
Moore-McQuillan v Scott [2006] FCA 63, 149 FCR 486, cited
Pedersen v Delaveris [2010] FCA 536, considered
Rose, Re; Ex parte Devaban Pty Ltd (Unreported, Federal Court of Australia, Hill J, 7 October 1994), considered
Sharp, Re; Ex parte Tietyens Investments Pty Ltd [1998] FCA 1367, considered
Sturdy Components Pty Ltd v Trustee of the Bankrupt Estate of Sturt [2000] FCA 884, referred to
Veghelyi, Re; Smith v Official Trustee in Bankruptcy (1993) 45 FCR 413, referred to
Westpac Banking Corporation v Ollis [2007] FCA 1194, cited
Date of hearing: 30 March 2011
Place: Sydney
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 23
Counsel for the Applicant: Mr A J McInerney
Solicitor for the Applicant: Foulsham & Geddes Solicitors
Counsel for the First Respondent: The First Respondent did not appear
Counsel for the Second Respondent: The Second Respondent appeared in person

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 238 of 2011

BETWEEN:

7STEEL BUILDING SOLUTIONS PTY LTD (ACN 122 413 503)
Applicant

AND:

JASON DEAN WRIGHT
First Respondent

DAVID SOLOMONS
Second Respondent

JUDGE:

FLICK J

DATE OF ORDER:

7 APRIL 2011

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Pursuant to s 58(3) of the Bankruptcy Act1966 (Cth) leave is granted to the Applicant to take fresh steps in and continue with Supreme Court of New South Wales Equity Division Commercial List proceedings Case No. 2010/304280 against the First Respondent to the extent necessary to enable the Supreme Court of New South Wales to determine the Applicant’s entitlement to the relief specified in paragraphs 1(a)(i), 1(b), 4, 5, 6, 7 and 8 of the Summons filed in the Supreme Court proceedings.

2.For the purposes of Order 1, leave to continue the Supreme Court proceedings is deemed to have been granted on 12 November 2010.

3.Each party is to pay its own costs.

Note:Settlement and entry of…

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7Steel Building Solutions Pty Ltd v Wright [2011] FCA 328
Case
[2011] FCA 328
Decision Date

CaseChat Overview and Summary

The case of 7Steel Building Solutions Pty Ltd v Wright involved a dispute between the applicant company, 7Steel Building Solutions, and the first respondent, Mr. Wright. The applicant sought leave to continue Supreme Court proceedings in New South Wales, which were related to a complex matter involving several parties and issues of bankruptcy law. The nature of the dispute centred around the applicant's entitlement to certain relief as outlined in various paragraphs of the summons filed in the Supreme Court proceedings.

The primary legal issue before the court was whether to grant the applicant leave to continue with the Supreme Court proceedings under section 58(3) of the Bankruptcy Act 1966 (Cth). The court had to consider whether the proceedings involved such complex facts and law, and whether they involved other parties, that it was necessary to determine whether leave was required. The applicant argued that the proceedings were necessary to determine their entitlement to specific relief, and the first respondent did not oppose the granting of leave.

In granting leave, the court acknowledged the complexity of the facts and the law involved in the case, as well as the involvement of other parties. The court found that it was not necessary to formally determine if leave was required, as the applicant had already initiated the proceedings. The court noted that the applicant's entitlement to relief was contingent upon the outcome of the Supreme Court proceedings, and granting leave would facilitate the resolution of the complex issues at hand. The court also deemed that leave to continue the proceedings had been granted on 12 November 2010, and ordered that each party bear their own costs.

In conclusion, the court granted leave to the applicant to continue with the Supreme Court proceedings, allowing the applicant to pursue the relief specified in the summons. The decision underscores the importance of allowing complex bankruptcy cases to proceed in an appropriate forum, where the necessary legal and factual issues can be thoroughly examined.

Orders

Orders of the court

1. Pursuant to s 58(3) of the Bankruptcy Act 1966 (Cth) leave is granted to the Applicant to take fresh steps in and continue with Supreme Court of New South Wales Equity Division Commercial List proceedings Case No. 2010/304280 against the First Respondent to the extent necessary to enable the Supreme Court of New South Wales to determine the Applicant’s entitlement to the relief specified in paragraphs 1(a)(i), 1(b), 4, 5, 6, 7 and 8 of the Summons filed in the Supreme Court proceedings.

2. For the purposes of Order 1, leave to continue the Supreme Court proceedings is deemed to have been granted on 12 November 2010.

3. Each party is to pay its own costs.

Note:

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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