Carvana v State of New South Wales (No 2)

In Carvana v State of New South Wales (No 2), the plaintiff, who had initiated proceedings involving claims of malicious prosecution, false imprisonment, and trespass to goods, subsequently became a bankrupt. The defendant, the State of New South Wales, sought to have certain claims dismissed as they were deemed to be personal wrongs under section 60(4) of the Bankruptcy Act 1966 (Cth). The court was tasked with determining whether the proceedings could continue by the bankrupt and if the aspects of the proceedings that were not within section 60(4) should be dismissed due to the trustee's failure to elect to continue.

The primary legal issue before the court was whether the bankrupt's proceedings could be continued and if the aspects not within section 60(4) should be dismissed after the trustee's failure to elect. The court examined the nature of the claims and whether they constituted personal wrongs. The court also considered the implications of the trustee's inaction and its effect on the continuation of the proceedings.

The court held that the bankrupt's proceedings could continue, but only in respect of the claims that did not involve personal wrongs. The aspects of the proceedings that were not within section 60(4) were dismissed due to the trustee's failure to elect. The court made an indemnity costs order against the plaintiff, who failed to obtain a judgment more favourable than the terms of an offer of compromise, and was unrepresented. The court also made a gross sum costs order against the plaintiff, given their likely inability to pay any costs order.