Diab and Nye and Ors

In the Family Court of Australia, Ms Diab, appearing as a litigant in person, sought an interim injunction against Mr Nye and Mr Knox, the joint and several trustees of the bankrupt estate of her husband, Mr Edris. The dispute concerned the sale of the parties' home, which the trustee had contracted to sell with settlement scheduled for 20 April 2018. Ms Diab's application aimed to prevent the trustee from settling the sale, seeking time for herself and her daughters to find alternative accommodation.

The primary legal issue before the Court was whether an injunction should be granted under section 114 of the Family Law Act 1975 (Cth) to restrain the trustee from settling the sale of the matrimonial home. This required the Court to consider if there were sufficient grounds to interfere with the trustee's statutory obligations in managing the bankrupt's estate, particularly given the pending proceedings in the Supreme Court of Victoria initiated by the trustee. The Court also considered the basis of Ms Diab's claim to a significant portion of the sale proceeds, which she asserted was 80% of the equity.

Justice Cronin found no basis to grant the injunction. The Court noted that the affidavit supporting Ms Diab's application was largely unhelpful in establishing grounds for injunctive relief. While Ms Diab alluded to cultural customs and alleged contributions to mortgage payments, the Court found these assertions insufficient to justify interference with the trustee's role. The Court emphasised that the home was in the husband's name and he was bankrupt, meaning any interest he had rested with the trustee. Furthermore, Ms Diab's claims regarding precedents for receiving a majority share of jointly owned assets were unsubstantiated and lacked relevance without evidence of joint ownership or specific precedent.

Consequently, the Court dismissed Ms Diab's application for interim orders. The application for final relief was adjourned to the registrar's list for further consideration, with the prospect of the matter being transferred to the Federal Circuit Court. The Court urged the parties to seek legal advice and endeavour to negotiate a resolution to avoid substantial legal costs.