Crocker v Infa-Secure Pty Ltd

Case [2018] FCA 84


FEDERAL COURT OF AUSTRALIA

Crocker v Infa-Secure Pty Ltd [2018] FCA 84

File numbers: QUD 668 of 2017
QUD 706 of 2017
Judge: LOGAN J
Date of judgment: 9 February 2018
Catchwords: PRACTICE AND PROCEDURE – Federal Court of Australia – applicant seeking to appeal vexatious proceedings order – s 37AO(2) and s 37AM of the Federal Court Act – importance of access to justice system – conclusion that applicant had instituted proceedings frequently and without reasonable cause in Australian courts – s 37AO order made.
Legislation:

A New Tax System (Australian Business Number) Act 1999 (Cth) s 184.1

A New Tax System (Goods and Services Tax) Act 1999 (Cth) s 41

Bankruptcy Act 1966 (Cth), ss 53B, 74, 153A, 153B,

Federal Court of Australia Act1976 (Cth) ss 4, 31A, 37AO

Federal Court Rules 2011 (Cth) r 10.11, r 26.12, r 40.20.

Cases cited:

Bird v Registrar [2016] FCAFC 188

Boles v Official Trustee in Bankruptcy (2001) 183 ALR 239

Crocker v Toys R Us (Australia) Pty Ltd [2016] FCA 1103.

Crocker v Toys R Us (Australia) Pty Ltd (No 2) [2015] FCA 727

Francis v Eggleston Mitchell Lawyers Pty Ltd [2013] FCA 564

Fuller v Toms (2015) 234 FCR 535

Infa-Secure Pty Limited v Crocker [2015] FCA 830

Infa-Secure Pty Limited v Crocker (No 2) [2016] FCA 202

Kowalski v Mitsubishi Motors Australia Ltd (2011) 198 FCR 153.

Re Williams (1968) 13 FLR 10

Spencer v Commonwealth of Australia (2010) 241 CLR 118

Stankiewicz v Plata [2000] FCA 1185

Date of hearing: 6 February 2018
Date of last submissions: QUD 668 of 2017 – 10 January 2018
QUD 706 of 2017 – 5 February 2018
Registry: Queensland
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: General and Personal Insolvency
Category: Catchwords
Number of paragraphs: 32
In QUD 668 of 2017:
Solicitor for the applicant

The applicant made written submissions but did not appear in person

Solicitor for the respondent Chrysiliou Lawyers
Counsel for the respondent Nicholas Ferrett
In QUD 706 of 2017
Solicitor for the applicant Chrysiliou Lawyers
Solicitor for the respondent The respondent made written submissions but did not appear in person
Table of Corrections
20 February 2018 The second sentence of paragraph 28 has been amended to read: “What persuades me that it is not is that Ms Crocker has persisted in bringing applications against Infa-Secure, as the bankruptcy review application and the bankruptcy annulment applications attest. To give judgment in respect of the s 37AO application will have no effect on the Court’s ability to determine the issues which are raised in QUD 9 of 2015.”
19 February 2018 In the last sentence of paragraph 27:  “That is because, as against the remaining parties to that proceeding, judgement in respect of the substantive application is presently reserved” has been replaced with: “Ms Crocker is also a respondent to QUD 9 of 2015, brought by Infa Secure, judgment in which is presently reserved.”
19 February 2018 In the last sentence…

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AGLC
Crocker v Infa-Secure Pty Ltd [2018] FCA 84
Case
[2018] FCA 84
Decision Date

CaseChat Overview and Summary

The Federal Court of Australia recently dealt with an application by Crocker, the applicant, to appeal a vexatious proceedings order made against Infa-Secure Pty Ltd, the respondent. The crux of the matter was the respondent’s history of instituting proceedings frequently and without reasonable cause in Australian courts, leading to the making of the vexatious proceedings order under section 37AO of the Federal Court of Australia Act 1976 (Cth). The respondent sought to appeal this order, challenging the court's conclusion that she had frequently instituted proceedings without reasonable cause. The legal issues centred on the interpretation and application of sections 37AO(2) and 37AM of the Federal Court Act, with a particular focus on the importance of maintaining the integrity of the justice system by preventing vexatious litigation.

The court examined the respondent’s history of litigation, noting that she had instituted numerous proceedings in various courts, many of which were dismissed or withdrawn without success. This pattern indicated a propensity to engage in litigation that was not warranted or had little prospect of success. The court also considered the respondent’s submissions and the evidence presented but ultimately found that the respondent had not demonstrated that the primary judge erred in concluding that she had instituted proceedings frequently and without reasonable cause. The court emphasised the need to protect the justice system from those who abuse the legal process, underscoring the importance of maintaining public confidence in the courts.

Consequently, the court upheld the vexatious proceedings order, prohibiting the respondent from instituting proceedings in the Court, subject to specified exceptions. The court also ordered the respondent to pay the applicant's costs of and incidental to the application. This decision reinforces the Federal Court's commitment to preventing vexatious litigation and safeguarding the integrity of the judicial process. The final orders reflect the court's determination that the respondent’s history of litigation warranted stringent measures to prevent further abuse of the court’s processes.

Orders

Orders of the court

1. Subject to the exception specified in Order 2, the respondent be prohibited, pursuant to section 37AO of the Federal Court of Australia Act 1976 (Cth), from instituting proceedings in the Court.

2. The prohibition specified in Order 1 not extend to any interlocutory application by the respondent in proceeding QUD 9 of 2015 in the Court subsequent to the delivery of judgement in respect of the substantive application in that proceeding or to any appeal by her from that judgement.

3. The respondent pay the applicant’s costs of and incidental to the application, to be taxed if not agreed.

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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