FEDERAL COURT OF AUSTRALIA
Frigger v Trenfield (Application for Release from Undertaking) [2023] FCA 1284
File number: WAD 278 of 2021 Judgment of: FEUTRILL J Date of judgment: 24 October 2023 Catchwords: PRACTICE AND PROCEDURE – undertaking – respondent’s interlocutory application to be released from undertaking – where undertaking given in lieu of interlocutory order pending outcome of appeal – where appeal has been resolved in favour of respondent – where special leave to the High Court of Australia has been refused Legislation: Bankruptcy Act1966 (Cth) ss 116(2)(d)(iii)(A), 149
Insolvency Practice Rules (Bankruptcy) 2016 (Cth) rr 42-40, 70-47(3)
Cases cited: Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc [1981] HCA 39; (1981) 148 CLR 170
Frigger v Trenfield (No 10) [2021] FCA 1500
Frigger v Trenfield (Application for Stay Pending Appeal) [2021] FCA 1605
Frigger v Trenfield (No 3) [2023] FCAFC 49
Frigger v Trenfield [2023] HCASL 110
Thomson Australian Holdings Pty Ltd v Trade Practices Commission [1981] HCA 48; (1981) 148 CLR 150
Division: General Division Registry: Western Australia National Practice Area: Commercial and Corporations Sub-area: General and Personal Insolvency Number of paragraphs: 28 Date of last submissions: 31 May 2023 Date of hearing: 25 May 2023 Counsel for the Appellants: The Appellants appeared in person Counsel for the Respondent: Mr SD Majteles Solicitor for the Respondent: Johnson Winter Slattery ORDERS
WAD 278 of 2021 BETWEEN: ANGELA CECILIA THERESA FRIGGER
First Appellant
HARTMUT HUBERT JOSEF FRIGGER
Second Appellant
AND: KELLY-ANNE LAVINA TRENFIELD
Respondent
ORDER MADE BY:
FEUTRILL J
DATE OF ORDER:
24 OCTOBER 2023
THE COURT ORDERS THAT:
1.The respondent be released from her undertaking given to the Court in these proceedings and noted in the order of the Court made on 16 December 2021.
2.The appellants pay the respondent's costs of this application to be taxed if not agreed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
FEUTRILL J
On 16 December 2021 the respondent (Ms Trenfield) gave an undertaking to the Court in her capacity as trustee of the bankrupt estates of each of the first appellant (Mrs Frigger) and second appellant (Mr Frigger) to take no steps to dispose of, transfer or otherwise deal with the shares held by Commonwealth Securities Limited in Portfolio 270815 without first giving 30 days prior notice to the Friggers. That undertaking was subject to Ms Trenfield complying with any court order concerning the CommSec shares and Ms Trenfield having liberty to apply on notice to vary or be released from the undertaking: Frigger v Trenfield (Application for Stay Pending Appeal) [2021] FCA 1605 (Frigger No 1 WAD 278/2021). By an interlocutory application made on 8 May 2023, Ms Trenfield applied, on notice to the Friggers, to be released from that undertaking. These reasons concern that application.
On 20 July 2018 a sequestration order was made against the Friggers’ respective estates. On 31 August 2018 Ms Trenfield and Mr Paul Allen…
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- AGLC
- Frigger v Trenfield (Application for Release from Undertaking) [2023] FCA 1284
- Case
- [2023] FCA 1284
- Decision Date
CaseChat Overview and Summary
The legal issue at the heart of this case was the interpretation and application of the Federal Court's rules concerning undertakings given in lieu of interlocutory orders. The court was tasked with determining whether the resolution of the underlying appeal justified the release of the undertaking. This required an examination of the circumstances under which the undertaking was given, the nature of the appeal, and the outcome of the appeal, including the refusal of special leave to appeal to the High Court.
In considering the application, the court noted that the appeal had been resolved in favour of Trenfield, and special leave to appeal to the High Court had been refused. Given these circumstances, the court found that Trenfield should be released from her undertaking. The court emphasised that the primary purpose of an undertaking is to ensure that a party adheres to certain conditions during the pendency of litigation, and that the conditions are no longer necessary once the appeal has been resolved. The court also acknowledged the principle that parties should not be unduly burdened by undertakings once the underlying dispute has been concluded.
Consequently, the court ordered that Trenfield be released from her undertaking, and that the appellants pay Trenfield's costs of the application to be taxed if not agreed. This decision underscores the importance of the conditions under which undertakings are given and the principles guiding their release once the underlying litigation has been concluded.
Orders
Orders of the court
1. The respondent be released from her undertaking given to the Court in these proceedings and noted in the order of the Court made on 16 December 2021.
2. The appellants pay the respondent's costs of this 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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