Garrett v Macks

Case [2014] FCA 1259


FEDERAL COURT OF AUSTRALIA

Garrett v Macks [2014] FCA 1259

Citation: Garrett v Macks [2014] FCA 1259
Parties: ANDREW MORTON GARRETT v PETER IVAN MACKS
File number: VID 304 of 2014
Judge: TRACEY J
Date of judgment: 21 November 2014
Catchwords: BANKRUPTCY – application for summary judgment – where existing settlement agreement contained release clause which unconditionally released both parties from further litigation in relation to the administration of the estate – whether reasonable prospects of successfully prosecuting proceeding – whether proceeding is frivolous, vexatious or an abuse of process
Legislation: Federal Court of Australia Act 1976 (Cth) – s 31A
Federal Court Rules 2011 – r 26.01
Cases cited: Cirillo v Citicorp [2001] SASC 349 – cited
McDermott v Black (1940) 63 CLR 161 – considered
Rucinski v Monash University [2012] FCA 362 – cited
Spencer v The Commonwealth (2010) 241 CLR 118 – considered
State of Queensland v J L Holdings Pty Ltd (1997) 189 CLR 146 – cited
Date of hearing: 21 November 2014
Place: Melbourne
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 27
Counsel for the Applicant: The applicant appeared in person
Counsel for the Respondent: Mr P Zappia
Solicitor for the Respondent: DLA Piper Australia

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 304 of 2014

BETWEEN:

ANDREW MORTON GARRETT
Applicant

AND:

PETER IVAN MACKS
Respondent

JUDGE:

TRACEY J

DATE OF ORDER:

21 NOVEMBER 2014

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The application be dismissed with costs.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 304 of 2014

BETWEEN:

ANDREW MORTON GARRETT
Applicant

AND:

PETER IVAN MACKS
Respondent

JUDGE:

TRACEY J

DATE:

21 NOVEMBER 2014

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. The applicant, Mr Andrew Garrett, commenced this proceeding by a fast track application filed on 5 June 2014.  He sought orders that the surplus of his bankrupt estate be paid to him by the respondent who was his trustee in bankruptcy.  Mr Garrett also sought orders that Mr Macks provide him with documents relating to the estate including legal advice and a series of interlocutory orders relating to his estate.  A further interlocutory application was filed on 12 August 2014.  It sought discovery orders and an order that evidence “adduced” in two other proceedings (VID 425 of 2014 and VID 248 of 2014) be “adduced” as evidence in the present proceeding.

  2. By interlocutory application filed on 19 September 2014 Mr Macks sought orders for summary judgment pursuant to s 31A(2) of the Federal Court of Australia Act 1976 (Cth) (“the Act”) and Rule 26.01 of the Federal Court Rules 2011 (“the Rules”).

  3. The various interlocutory applications were listed for hearing on 3 October 2014.  On 1 October 2014 Mr Garrett filed another interlocutory application in which he sought an adjournment of the hearing “to enable Commercial and General Law to file a Notice of Acting and properly brief…

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AGLC
Garrett v Macks [2014] FCA 1259
Case
[2014] FCA 1259
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Garrett v Macks involved a dispute between the applicant, Garrett, and the respondent, Macks. Garrett sought to overturn a settlement agreement, which contained a release clause that unconditionally discharged both parties from any further litigation relating to the administration of the estate. Garrett contended that there were reasonable prospects of successfully prosecuting the proceeding and that the proceeding was neither frivolous, vexatious, nor an abuse of process. Macks, on the other hand, argued that the release clause in the settlement agreement precluded Garrett from pursuing the matter further.

The court was required to determine whether Garrett had reasonable prospects of successfully prosecuting the proceeding and whether the proceeding was frivolous, vexatious, or an abuse of process. The court considered the terms of the settlement agreement, the release clause, and the circumstances surrounding the agreement. The court also considered the principles of finality and the importance of upholding agreements between parties.

In dismissing the application, the court found that the release clause in the settlement agreement was clear and unambiguous. The court held that the clause precluded Garrett from pursuing the matter further, and there were no reasonable prospects of successfully prosecuting the proceeding. The court further found that the proceeding was frivolous and an abuse of process. The court dismissed the application and ordered that costs be paid by Garrett.

In conclusion, the Federal Court of Australia dismissed the application for summary judgment and ordered that costs be paid by Garrett. The court found that the release clause in the settlement agreement precluded Garrett from pursuing the matter further, and there were no reasonable prospects of successfully prosecuting the proceeding. The court also found that the proceeding was frivolous and an abuse of process.

Orders

Orders of the court

1. The application be dismissed with costs.

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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