Boyle as Liquidator of the Forgione Family Group Pty Ltd v Forgione

The proceeding before Judge Antoni Lucev of the Supreme Court of Western Australia concerned an application by the liquidator of Forgione Family Group Pty Ltd for a sequestration order against Mr. Forgione. The dispute arose from a claim by the liquidator for a debt owed by Mr. Forgione to the company, which Mr. Forgione sought to set off against a claim he had against the company.

The central legal issues before the Court were whether Mr. Forgione was *Anshun* estopped from raising his claim as a ground of opposition to the sequestration order, and consequently, whether *Anshun* estoppel operated to preclude him from asserting a statutory set-off. The Court was required to determine if it was reasonable for Mr. Forgione to have raised his set-off claim in earlier proceedings involving the company.

Judge Lucev applied the principles of *Anshun* estoppel, which prevents a party from raising in subsequent proceedings a claim or defence that could and should have been raised in earlier proceedings between the same parties. His Honour considered the nature of the earlier proceedings and the relationship between the debt owed by Mr. Forgione and his cross-claim. The Court found that Mr. Forgione's claim for set-off was so closely connected to the liquidator's claim that it ought to have been raised in the earlier proceedings. Therefore, he was *Anshun* estopped from raising it as a defence to the sequestration application, and this estoppel precluded him from asserting the statutory set-off.

The Court made orders for the sequestration of Mr. Forgione's estate.