FEDERAL COURT OF AUSTRALIA
Donnelly (Trustee), in the matter of the bankrupt estate of Hancock v Porteous
[2001] FCA 345INJUNCTIONS – interlocutory injunctions – injunctions to preserve status quo and property pending determination of rights – Mareva orders – factors to be considered by the Court in determining whether orders should be made
BANKRUPTCY – administration of bankrupt estate under Part XI of the Bankruptcy Act 1966 (Cth) (Act) – transfer affected by s 120 of the Act – date on which the trustee’s claim arises – date from which interest payable by the transferee
Bankruptcy Act 1966 (Cth), s 40(1)(b), s120, s 247A(1)
Nippon Yusen Kaisha v Karageorgis [1975] 1 WLR 1093 referred to
Mareva Compania Naviera SA v International Bulkcarriers SA [1975] 2 Lloyd’s Rep 509; [1980] 1 All ER 213 followed
Cardile v LED Builders Pty Ltd (1999) 198 CLR 380 followed
Glenwood Management Group Pty Ltd v Mayo [1991] 2 VR 49 followed
Pearce v Waterhouse [1986] VR 603 followed
Jackson v Sterling Industries Ltd (1987) 162 CLR 612 followed
Williams v Lloyd (1934) 50 CLR 341 followedMAX CHRISTOPHER DONNELLY (AS TRUSTEE OF THE ESTATE OF THE LATE LANGLEY GEORGE HANCOCK) v ROSEMARIE PORTEOUS & ORS
N 8132 of 1999STONE J
SYDNEY
2 APRIL 2001
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
N 8132 OF 1999
BETWEEN:
MAX CHRISTOPHER DONNELLY (AS TRUSTEE OF THE ESTATE OF THE LATE LANGLEY GEORGE HANCOCK)
APPLICANTAND:
ROSEMARIE PORTEOUS
FIRST RESPONDENTJOHANNA LACSON NOMINEES PTY LIMITED
SECOND RESPONDENTBELLE ROSA HOLDINGS PTY LIMITED
THIRD RESPONDENTJUDGE:
STONE J
DATE OF ORDER:
2 APRIL 2001
WHERE MADE:
SYDNEY
ON THE APPLICANT GIVING THE USUAL UNDERTAKING AS TO DAMAGES THE COURT ORDERS THAT:
1. Pending the determination of these proceedings, the First Respondent be restrained by herself, her servants or agents from selling, charging, mortgaging, encumbering or otherwise disposing of or dealing with the property known as “Prix d’Amour” (being Lots 100 and 104, Wellington Street, Mosman Park in the State of Western Australia) without first giving twenty-one (21) days’ written notice to the Applicant.
2. Pending the determination of these proceedings, the First and Second Respondents be restrained by themselves, their servants or agents from selling, charging, mortgaging, encumbering or otherwise disposing of or dealing with the property known as Lot 26, Alaqua, Phase 3 in the Country of Seminole, Florida in the United States of America (“the Orlando Property”) without first giving twenty-one (21) days’ written notice to the Applicant.
3. Pending the determination of these proceedings that, in the event of sale of Prix d’Amour, the First Respondent give not less than twenty-one (21) days’ written notice to the Applicant prior to settlement of such sale.
4. Pending the determination of these proceedings that, in the event of sale of the Orlando Property, the First and Second Respondents give not less than twenty-one (21) days’ written notice to the Applicant prior to settlement of such sale.
5. In the event of sale…
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- AGLC
- Donnelly v Porteous [2001] FCA 345
- Case
- [2001] FCA 345
- Decision Date
CaseChat Overview and Summary
The court had to decide on the appropriate measures to ensure that the Applicant was adequately informed and could act upon any proposed sales of the properties in question. The legal issues included whether the Applicant had a sufficient interest in the properties to warrant such interim relief, and whether the Respondents had any justifiable grounds to oppose these measures. The court examined the terms of any agreements or understandings between the parties, as well as the implications of such sales on the Applicant’s rights and interests.
In its reasoning, the court noted that the Applicant had a significant interest in both properties and that any sale without proper notice could potentially prejudice the Applicant’s rights. The court held that the Respondents were required to provide the Applicant with adequate notice before proceeding with any sale, and that specific sums of money should be retained from the sale proceeds to account for the Applicant’s interest. This decision was made to protect the Applicant’s interests until the substantive issues in the case were resolved. The court also took into account the urgency of the situation and the potential for loss or prejudice to the Applicant if the interim orders were not granted.
Pending the determination of the broader proceedings, the court made several orders to protect the Applicant’s interests. These included restraining the Respondents from disposing of the properties without notice, and requiring specific sums to be retained from the sale proceeds and deposited into a joint bank account pending resolution of the case. These orders aimed to ensure that the Applicant was fairly treated and that their interests were safeguarded throughout the interim period.
Orders
Orders of the court
1. Pending the determination of these proceedings, the First Respondent be restrained by herself, her servants or agents from selling, charging, mortgaging, encumbering or otherwise disposing of or dealing with the property known as “Prix d’Amour” (being Lots 100 and 104, Wellington Street, Mosman Park in the State of Western Australia) without first giving twenty-one (21) days’ written notice to the Applicant.
2. Pending the determination of these proceedings, the First and Second Respondents be restrained by themselves, their servants or agents from selling, charging, mortgaging, encumbering or otherwise disposing of or dealing with the property known as Lot 26, Alaqua, Phase 3 in the Country of Seminole, Florida in the United States of America (“the Orlando Property”) without first giving twenty-one (21) days’ written notice to the Applicant.
3. Pending the determination of these proceedings that, in the event of sale of Prix d’Amour, the First Respondent give not less than twenty-one (21) days’ written notice to the Applicant prior to settlement of such sale.
4. Pending the determination of these proceedings that, in the event of sale of the Orlando Property, the First and Second Respondents give not less than twenty-one (21) days’ written notice to the Applicant prior to settlement of such sale.
5. In the event of sale of Prix d’Amour, there shall be retained out of the proceeds of such sale and placed in a joint bank account in the names of the Applicant and the solicitor for the Respondents, an amount of $3,242,581.80 together with interest on that amount calculated in accordance with the rates of interest prescribed under Schedule J of the Supreme Court Rules 1970 (NSW) from 8 April 1999 to the date of settlement of such sale.
6. In the event of sale of the Orlando Property, there shall be retained out of the proceeds of such sale and placed in a joint bank account in the names of the Applicant and the solicitor for the Respondents, an amount of $1,590,531.54 together with interest on that amount calculated in accordance with the rates of interest prescribed under Schedule J of the Supreme Court Rules 1970 (NSW) from 8 April 1999 to the date of settlement of such sale.
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
Established by: STONE J
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