Burnett v Browne (No 4)

Case [2021] FCA 933


FEDERAL COURT OF AUSTRALIA

Burnett v Browne (No 4) [2021] FCA 933

File number: TAD 25 of 2020
Judgment of: O'CALLAGHAN  J
Date of judgment: 3 August 2021
Catchwords: PRACTICE AND PROCEDURE – application by trustee in bankruptcy to be released and discharged from an undertaking made to the Court – application granted due to changed circumstances
Legislation: Bankruptcy Act 1966 (Cth) ss 109(1)(a), 134(1)(a), Schedule 2 s 90-15(1)
Cases cited:

Adam P Brown Male Fashions Pty Ltd v Philip Morris Incorporated (1981) 148 CLR 170

Philip Morris Incorporated v Adam P Brown Male Fashions Pty Ltd (1980) 44 FLR 88

Division: General Division
Registry: Tasmania
National Practice Area: Commercial and Corporations
Sub-area: General and Personal Insolvency
Number of paragraphs: 7
Date of hearing: 3 August 2021
Counsel for the Applicant: The Applicant did not appear
Solicitor for the Third Respondent: Mr M Rapley of Butler McIntyre & Butler

ORDERS

TAD 25 of 2020
BETWEEN:

GAIL LOUISE BURNETT

Applicant

AND:

ROLAND ALEXANDER BROWNE

First Respondent

ANTHONY FAIRLEA FITZGERALD

Second Respondent

PAUL JOHN COOK

Third Respondent

ORDER MADE BY:

O'CALLAGHAN  J

DATE OF ORDER:

3 AUGUST 2021

THE COURT ORDERS THAT:

1.The third respondent (Mr Cook) be released and discharged from the undertaking that he gave to the Court on 31 August 2020.

2.Order 2 of the orders made by Kerr J on 31 August 2020 be set aside.

3.In lieu of that order, order that Mr Cook is authorised, pursuant to s 90-15(1) of Schedule 2 to the Bankruptcy Act 1966 (Cth) (the Act) to exercise a power of sale of the land known as and situated at 56 Coleman Street, Moonah in Tasmania, more specifically described in certificate of title Volume 55148 Folio 24 (the Property) pursuant to s 134(1)(a) of the Act as follows:

(a)Ms Gail Burnett provide Mr Cook with vacant possession of the Property within 28 days of the date of these orders.

(b)In the event that Ms Burnett fails to give up possession of the Property in accordance with order 3(a), a writ of possession issue forthwith in favour of Mr Cook.

(c)Ms Burnett remove from the Property all vehicles, rubbish and chattels which have not vested in Mr Cook (Personal Property) within 28 days of the date of these orders.

(d)In the event that Ms Burnett fails to comply with order 3(c), Mr Cook may remove and dispose of the Personal Property as he sees fit after further 7 days have expired.

(e)Ms Burnett surrender to Mr Cook the duplicate Certificate of Title of the Property, if any, within 14 days of these orders.

(f)Mr Cook:

(i)have conduct of the sale of the Property; and

(ii)have authority to execute all documents required to effect the sale of the Property (including, without limitation, the contract of sale, vendor’s statement, transfer of land documents and appointment of selling agent).

(g)Ms Burnett execute all such documents and do all such things as are necessary to enable Mr Cook to effect the…

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Burnett v Browne (No 4) [2021] FCA 933
Case
[2021] FCA 933
Decision Date

CaseChat Overview and Summary

The court heard an application from the trustee in bankruptcy, Mr Cook, seeking to be released from an undertaking he had previously given. The application was brought in the context of proceedings initiated by Gail Burnett against various parties, including Mr Cook. The legal dispute centred on whether the trustee should be relieved from the obligation of the undertaking due to significant changes in circumstances since it was made. The case was determined in the Federal Court of Australia.

The primary legal issue before the court was whether the trustee should be discharged from his prior undertaking given to the Court, considering the altered circumstances since the date of the undertaking. The court was required to assess whether the changes in circumstances were sufficient to warrant the discharge of the undertaking and if so, whether the new orders proposed by the trustee were appropriate.

The court granted the application and found that the circumstances had indeed changed sufficiently to warrant the discharge of the trustee from the undertaking. The court set aside the previous order and substituted it with new orders that allowed the trustee to exercise a power of sale of the specified property. The court also ordered that the applicant's costs be paid out of the bankrupt estate, except for the costs referred to in a previous order.

The final orders of the court provided for the discharge of Mr Cook from the previous undertaking and authorised him to conduct the sale of the property under specific terms, including timelines for the surrender of possession and removal of personal property. Additionally, the costs of the application were to be paid out of the bankrupt estate, subject to certain exceptions.

Orders

Orders of the court

1. The third respondent (Mr Cook) be released and discharged from the undertaking that he gave to the Court on 31 August 2020.

2. Order 2 of the orders made by Kerr J on 31 August 2020 be set aside.

3. In lieu of that order, order that Mr Cook is authorised, pursuant to s 90-15(1) of Schedule 2 to the Bankruptcy Act 1966 (Cth) (the Act) to exercise a power of sale of the land known as and situated at 56 Coleman Street, Moonah in Tasmania, more specifically described in certificate of title Volume 55148 Folio 24 (the Property) pursuant to s 134(1)(a) of the Act as follows:

(a) Ms Gail Burnett provide Mr Cook with vacant possession of the Property within 28 days of the date of these orders.

(b) In the event that Ms Burnett fails to give up possession of the Property in accordance with order 3(a), a writ of possession issue forthwith in favour of Mr Cook.

(c) Ms Burnett remove from the Property all vehicles, rubbish and chattels which have not vested in Mr Cook (Personal Property) within 28 days of the date of these orders.

(d) In the event that Ms Burnett fails to comply with order 3(c), Mr Cook may remove and dispose of the Personal Property as he sees fit after further 7 days have expired.

(e) Ms Burnett surrender to Mr Cook the duplicate Certificate of Title of the Property, if any, within 14 days of these orders.

(f) Mr Cook:

(i) have conduct of the sale of the Property; and

(ii) have authority to execute all documents required to effect the sale of the Property (including, without limitation, the contract of sale, vendor’s statement, transfer of land documents and appointment of selling agent).

(g) Ms Burnett execute all such documents and do all such things as are necessary to enable Mr Cook to effect the sale of the Property failing which a Registrar of the Court is authorised to do so.

4. The first and second respondents’ costs of the application, except the costs referred to in the orders made on 29 July 2021, be taxed and paid out of the applicant’s bankrupt estate in accordance with s 109(1)(a) of the Act.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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