FEDERAL CIRCUIT COURT OF AUSTRALIA
Dennison & Dennison [2021] FCCA 2039
File number(s): SYC 352 of 2020 Judgment of: JUDGE MORLEY Date of judgment: 13 August 2021 Catchwords: FAMILY LAW – Interim spousal maintenance application – respondent husband’s material filed out of time – Court declines to consider respondent’s position – case of the applicant that she requires funds for her litigation – where complex matters of corporate law at play – where application fits well within what either party could conceivably receive on the making of final orders – where orders are made as sought by applicant – orders for sale of former matrimonial home with $50,000 to be paid to each party from the net sale proceeds Legislation: Family Law Act 1975 (Cth), ss 79, 80, 114, 117
Federal Circuit Court Rules 2001 (Cth), rr 24.03, 24.04
Practice Direction No. 2 of 2017 ‘Interim Family Law Proceedings’
Cases cited: Bevan v Bevan (2013) 279 FLR 1
Candlin & Candlin [2017] FCCA 2211
Forgeard v Shanahan (1994) 35 NSWLR 206
Harris & Harris (1993) 113 FLR 472
Marchant & Marchant (2012) FamCAFC 181
Melville & Melville (No. 3) [2020] FamCAFC 231
Ming & Dao [2020] FamCA 726
Newett & Newett [2020] FamCAFC 76
Salvage & Fosse [2020] FamCAFC 144
Stanford & Stanford (2012) 247 CLR 108
Strahan & Strahan (Interim Property Orders) [2009] FamCAFC 166
Wenz & Archer [2008] FMCAfam 1119Number of paragraphs: 99 Date of hearing: 4 August 2021 Place: Sydney Solicitor for the Applicant: Annamaria Marano of Marano Family Lawyers Counsel for the First Respondent: Mr Stapleton Solicitor for the First Respondent: MCW Lawyers Counsel for the Second Respondent: Mr Bernie Solicitor for the Second Respondent: Bayside Solicitors Solicitor for the Third Respondent: No appearance ORDERS
SYC 352 of 2020 BETWEEN: MS DENNISON
Applicant
AND: MR DENNISON
First Respondent
MR C DENNISON
Second Respondent
COMPANY B
Third Respondent
ORDER MADE BY:
JUDGE MORLEY
DATE OF ORDER:
13 AUGUST 2021
THE COURT ORDERS THAT:
1.That by no later than 4:00PM on 27 August 2021 the Applicant and the First Respondent shall do all acts and things and sign all necessary documents to effect the sale of the property at C Road Suburb D New South Wales and more particularly described in Certificate of Title Folio Identifier … (‘the former matrimonial home’) by auction as follows:
(a)The former matrimonial home shall be listed with Estate Agent F of Suburb G New South Wales (‘the auctioneer’) for sale by auction within two months of the date of these orders;
(b)The reserve price of the former matrimonial home shall be such amount as is agreed between the Applicant and the First Respondent, and failing agreement being reached between them 21 days prior to the auction, then the reserve price shall be nominated by the auctioneer;
(c)The Applicant and the First Respondent shall give such instructions as are necessary to the solicitor for the Applicant to prepare a contract for sale of land and provide it to the auctioneer prior to…
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- Dennison & Dennison [2021] FCCA 2039
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- [2021] FCCA 2039
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CaseChat Overview and Summary
The legal issues before the Court included whether to order the sale of the former matrimonial home by auction, the terms and conditions of such a sale, the distribution of the sale proceeds, and the Applicant's entitlement to recover specific personal property. Additionally, the Court was required to consider the First Respondent's disclosure obligations and the Applicant's application for costs of interim proceedings. The Court also addressed the process for appointing a single expert to value financial assets.
Justice Morley ordered the sale of the former matrimonial home by auction, specifying a timeframe for listing, the method for determining the reserve price, and the roles of the parties and their solicitors in preparing the contract for sale. The Court detailed the process for obtaining the Certificate of Title and outlined the parties' obligations to cooperate with the auctioneer, including allowing inspections and ensuring the property was presentable. Provisions were made for negotiation if the reserve price was not met at auction and for subsequent auctions if the property remained unsold. The order also stipulated the order of payments from the sale proceeds, including fees, adjustments, legal costs, a sum of $50,000 to each party, and the balance to be held by the Applicant's solicitors pending further orders. The Applicant was granted access to the former matrimonial home to collect specified personal items. The Court also set deadlines for financial disclosure and submissions regarding costs, and established a process for instructing a single expert for asset valuation.
The Court further ordered that if the First Respondent paid $50,000 to the Applicant and it was accepted before the exchange of contracts for the matrimonial home, then the orders for sale and distribution of proceeds would be suspended pending further order. The proceedings were adjourned for further mention and directions.
Orders
Orders of the court
SYC 352 of 2020
BETWEEN:
MS DENNISON
Applicant
AND:
MR DENNISON
First Respondent
MR C DENNISON
Second Respondent
COMPANY B
Third Respondent
ORDER MADE BY:
JUDGE MORLEY
DATE OF ORDER:
13 AUGUST 2021
THE COURT ORDERS THAT:
1. That by no later than 4:00PM on 27 August 2021 the Applicant and the First Respondent shall do all acts and things and sign all necessary documents to effect the sale of the property at C Road Suburb D New South Wales and more particularly described in Certificate of Title Folio Identifier … (‘the former matrimonial home’) by auction as follows:
(a) The former matrimonial home shall be listed with Estate Agent F of Suburb G New South Wales (‘the auctioneer’) for sale by auction within two months of the date of these orders;
(b) The reserve price of the former matrimonial home shall be such amount as is agreed between the Applicant and the First Respondent, and failing agreement being reached between them 21 days prior to the auction, then the reserve price shall be nominated by the auctioneer;
(c) The Applicant and the First Respondent shall give such instructions as are necessary to the solicitor for the Applicant to prepare a contract for sale of land and provide it to the auctioneer prior to the auction no later than the date sought by the auctioneer and otherwise act on the sale;
(d) That within 14 days of orders the Applicant and or the First Respondent shall deliver to the Solicitor for the Applicant the Certificate of Title to the property;
(e) If the Certificate of Title to the property is held by someone other than the Applicant and or the First Respondent, then they will:
(i) Sign an irrevocable authorisation and direction (such document to be prepared by the solicitor acting on the sale of the property) to release the Certificate of Title to the said solicitor and deliver the authorisation document to the said solicitor no later than 21 days prior to the settlement date;
(ii) The said solicitor will use the authorisation and direction to obtain and hold the Certificate of Title (in escrow) pending the settlement of the sale of the property.
(f) The Applicant and the First Respondent shall do all acts and things and sign all documents necessary and co-operate in every way with the auctioneer in relation to the sale by auction including allowing inspection of the former matrimonial home at all times reasonably requested by the selling agent and ensuring that the former matrimonial home is clean, neat and in good order at the time of any inspection and on the day of auction.
(g) In the event of a dispute between the Applicant and the First Respondent as to a reserve price they shall accept the recommendation set by the auctioneer for the reserve price and they shall sign the Contract of Sale of Land to effect an exchange and sale of the former matrimonial home no less than 10 days prior to the auction.
(h) In the event the First Respondent refuses and/or neglects to sign any document including but not limited to an agency agreement and the Contract for Sale of Land for the sale of the property, the Registrar of the Federal Circuit Court of Australia and/or the Family Court of Australia at Sydney shall sign the said document in the name of the First Respondent pursuant to section 106A of the Family Law Act 1975 (Cth).
(i) The Applicant and the First Respondent shall attend at the auction and negotiate with the highest bidder in the event of the reserve price not being reached.
(j) That in the event that the former matrimonial home is not sold at the auction pursuant to order 1 or within 14 days after the date of the auction by further negotiation, then the parties shall cause a further auction of the former matrimonial home to be held within three months after the date of the first auction, with the auction to be repeated at three monthly intervals until the property is sold and for that purpose the provisions of Order 1 and Order 2 shall apply.
2. On completion of the sale of the former matrimonial home, the following payments shall be made:
(a) In payment of real estate and auctioneer fees;
(b) In payment of conveyancing adjustments on completion of the sale of the former matrimonial home;
(c) In payment of legal fees and disbursements of the solicitors acting on the sale of the former matrimonial home;
(d) In payment of a sum of $50,000.00 to each of the Applicant and the First Respondent and said payment to be categorised by the trial judge at the final hearing of the proceedings;
(e) In payment of the balance of the sale proceeds to the solicitors for the Applicant for investment of the same in a controlled monies account in the name of the Applicant and the First Respondent and shall be released and paid pursuant to orders of the Court.
3. That within 14 days of the date of these orders, the First Respondent shall provide access to the former matrimonial home to the Applicant at times to be agreed between the parties through their solicitors so as to enable the Applicant to remove such of the following property as is contained in the former matrimonial home as at 13 August 2021:
(a) Photos and frames of the children of the Applicant and the First Respondent, and family photos belonging to the Wife;
(b) Iron;
(c) Fridge in garage;
(d) Kitchenware;
(e) Half share of the linen, towels, sheets, tablecloths;
(f) Half share platters, dinner sets, new and never used (blue);
(g) Dyson vacuum cleaner;
(h) Half share of pots, pans, frypan and cooking utensils;
(i) Hand mixer;
(j) Kosta Boda vase collection and all gifts from the children of the Applicant and the First Respondent to the Applicant;
(k) Large mirror in dining room;
(l) Sewing kit;
(m) Sony camera;
(n) All items that previously belonged to the Applicant’s late parents
(o) Half share of cook books.
4. On the occasion of the Applicant attending at the former matrimonial home for collection of her items or nominees attending on her behalf, the Applicant may attend accompanied by two (2) other persons or the Applicant may be represented in that attendance by a person nominated by her in correspondence between the parties’ solicitors, and on such occasion the First Respondent may at his option remain in attendance at the property but shall not interfere in any way with the collection or removal of the items referred to in these orders by or on behalf of the Applicant.
Financial Disclosure
5. By no later than 4:00PM on 27 August 2021, each of the Applicant and the First Respondent shall cause a letter to be forwarded to the solicitors for the other party specifying further financial disclosure required in relation to these proceedings, and by no later than 4:00PM on 10 September 2021 each of the parties shall provide the financial disclosure sought so far as it is within the party’s power, possession, or control.
Costs Application
6. By no later than 4:00PM on 27 August 2021, the Applicant is to file and serve any written submissions in relation to her application for costs of these interim proceedings.
7. By no later than 4:00PM on 10 September 2021, the First Respondent is to file and serve any written submissions in reply.
8. By no later than 4:00PM on 17 September 2021, the Applicant is to file and serve any written submissions in reply.
Valuation
9. By 4:00PM on 20 August 2021, the Third Respondent Mr C Dennison is to cause a draft letter of joint instructions addressed to the Single Court Expert Ms J be provided to each of the Applicant and the First Respondent setting out the usual material contained in a joint letter of instructions for valuation of financial assets and in addition, setting out competing contentions of the parties in relation to disputed matters affecting valuation.
10. By 4:00PM on 27 August 2021, each of the Applicant and the First Respondent are to serve upon the other parties (other than the Second Respondent Company B) any amendments to the draft letter of instructions as contended for by them.
11. By 4:00PM on 3 September 2021, the Applicant, the First Respondent, and the Third Respondent are to agree upon the final form of the joint letter of instructions to be provided to the Single Court Expert Ms J.
THE COURT NOTES THAT:
A. The joint letter of instructions, so far as the material required therein by the First Respondent is concerned, will include reference to MYOB original sources that he seeks to have presented to and considered by the Single Court Expert in relation to issues affecting valuation.
THE COURT FURTHER ORDERS THAT:
12. In the event that the First Respondent tenders payment to the Applicant in the sum of $50,000.00 and same is accepted by the Applicant at any time prior to exchange of contracts for the former matrimonial property, orders 1 and 2 made today are thereupon suspended pending further order.
13. The proceedings are listed for further mention and directions at 10:00AM on 29 November 2021.
THE COURT NOTES THAT:
B. On 29 November 2021, the Court will consider the appropriate future dealing with the Amended Response to Application in a Case filed on 4 August 2021.
Section 121 of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
The relevant part for the evidence is the bar graph indicates that in December 2019 there was a sum of about $300,000 in that account, whereas in January 2020 there was a sum of $100,000 remaining in the account. Accordingly, in the period from the end of December 2019 to the end of January 2020, a sum of $200,000 had gone from the account.CONSIDERATION Now, the first issue raised in the matter is the application of the wife that the Suburb D be sold. That, of course, is an order available to the Court on the interim basis on various heads, either by way of an order in pursuance of a property distribution, which is what is put here, or even an order under section 114 of the Act by way of a mandatory injunction requiring the parties to take certain steps in relation to their property, often used in the cause of preserving assets in circumstances where the Court is satisfied equity is being eroded and that it should be addressed in the interests of justice. It is not the basis put before the Court on the evidence in this matter. I have the financial statement of the wife and the financial statement of the husband, as I have referred to, and they reveal that, as at the relevant dates of those financial statements, both of which go back quite some way now – the husband’s to March of 2020 and the wife’s to January of 2020 – nevertheless, at that time the husband was opining that the Suburb D had a value of $940,000, and the wife opining it had a value of $1 million, and it being mutual between them that it was unencumbered, that there is not security by way of registered mortgage for any loan account. The thrust of the case put forward by the wife was that she needs funds for the payment of legal fees in this matter so that she can maintain legal representation in what is, on the telling of any of the parties, a complex matter, or a matter with its complexities, and, secondly, to provide some funds to her for payment of living expenses. She asserts that the only source for those funds in an immediate sense is by way of sale of the Suburb D. The thrust of her case in relation to the personalty she seeks to recover is that she needs that to set herself up in her rental accommodation with the ordinary necessities of life, that they are available, and that that would save her having to expend money, which she does not, she says, really have on replacing those items. In relation to disclosure, she says that she has not received full and frank financial disclosure as required by the Act and the Rules from the husband, and that the husband needs to be compelled by the Court. The thrust of the husband’s case is that the wife had a significant sum of money about six months prior to separation, half a million dollars, at about the time of the separation something in the order of $300,000, and that the wife has given no evidence or explanation, certainly not in her evidence before the Court on the interim hearing, as to what has happened to those funds.