Brett Barry James Devine v State of Queensland

Brett Barry James Devine, the plaintiff, brought a proceeding against the State of Queensland, the defendant, seeking relief related to the conversion of a ship. The plaintiff, an undischarged bankrupt, claimed rights of possession in the ship, which he alleged was wrongfully converted by the defendant. The State of Queensland moved for summary judgment, contending that the plaintiff had no real prospect of success in his claims. The plaintiff, in turn, cross-applied to have the defence struck out. The court was required to determine whether the plaintiff's action should proceed and if the plaintiff had reasonable prospects of proving that the ship was received as income, which would exclude it from the purview of the Bankruptcy Act 1966.

The court assessed the plaintiff's arguments and the defendant's motion for summary judgment. The primary issue was whether the ship could be characterised as "after-acquired property" under sections 58 and 116 of the Bankruptcy Act 1966, which would vest it in the trustee in bankruptcy, or if it could be considered "income" under Division 4B of Part VI of the same Act, thereby not vesting in the trustee. The court also examined whether section 116 of the Bankruptcy Act 1966 applied to income and if the plaintiff had a reasonable prospect of proving the ship was income.

The court concluded that the ship was indeed after-acquired property, as defined under the Bankruptcy Act 1966. Consequently, it vested in the trustee in bankruptcy, and the plaintiff had no real prospect of proving that the ship was income. The court held that section 116 of the Bankruptcy Act 1966 applied to income, and the plaintiff's claims were without merit. The court granted judgment in favour of the defendant and dismissed the plaintiff's application.