George Town Council v NEILSEN

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FEDERAL CIRCUIT COURT OF AUSTRALIA

GEORGE TOWN COUNCIL v NEILSEN [2018] FCCA 74
Catchwords:
BANKRUPTCY – Judicial Review – costs order of Tribunal – whether constitutes a final or judgment order pursuant to s.42(1)(g) of the Bankruptcy Act1966 – application dismissed.

Legislation:

Bankruptcy Act 1966, ss.40, (1)(g), 41

Resource Management and Planning Appeal Tribunal Act 1993 (Tas), s.28(6)

Cases cited:

Resource Management and Planning Appeal Tribunal Act 1993 (Tas)
Scott v Chantopoulous[2008] FCA 1914
Gibbs, ex parte Triscott (1995) 133 ALR 718 2 p721

Applicant: GEORGE TOWN COUNCIL
Respondent: GRAEME NEILSEN
File Number: LNG 76 of 2016
Judgment of: Judge McGuire
Hearing date: 7 July 2017
Date of Last Submission: 12 December 2017
Delivered at: Launceston
Delivered on: 30 January 2018

REPRESENTATION

Counsel for the Applicant: Ms Knott
Solicitors for the Applicant: Page Seager
The Respondent appeared in person

ORDERS

  1. That the Application for Review filed 20 April 2017 be dismissed.

FEDERAL CIRCUIT COURT
OF AUSTRALIA
AT LAUNCESTON

LNG 76 of 2016

GEORGE TOWN COUNCIL

Applicant

And

GRAEME NEILSEN

Respondent

REASONS FOR JUDGMENT

Application

  1. This is an application for a review of a Registrar's decision made 13 April 2017 dismissing the applicant’s Creditors Petition filed against the respondent on 5 December 2016.

  2. The Registrar dismissed the petition because:

    i)A costs order of the Resource Management and Planning Appeal Tribunal (Tas) (“the Tribunal”) made 10 July 2014 and later quantified by an amended Certificate of Taxation issued by the Tribunal on 8 September 2015 was unenforceable because the order was not registered with the Supreme Court of Tasmania pursuant to s.28(6) of the Resource Management and Planning Appeal Tribunal Act 1993 (Tas) (“RMPAT Act”); and

    ii)The order is not a final judgment or order in accordance with s.40 (1) (g) of the Bankruptcy Act 1966 (“the Act”).

  3. The Application for Review filed 20 April 2017 seeks the following orders:

    i)The sequestration order be made in the terms of the Creditors Petition ($60,628.14);

    ii)The respondent pay the applicant's costs of the sequestration order; and

    iii)The respondent pay the applicant's costs of the review application.

  4. The applicant is represented by solicitors from whom I have received helpful written submissions.

  5. The respondent before me is self-represented and argues that the Application for Review be dismissed.  The respondent has provided me with copious materials including substantial written submissions.  From the respondent’s materials and his oral submissions in Court, I understand that he firstly adopts the reasoning of the Registrar in arguing for dismissal of the application.  In the alternative he puts forward a ‘go behind’ argument or arguments.

Background

  1. The respondent was involved in a planning dispute with the applicant Council regarding a redevelopment project.  The respondent is a former member of the George Town Council.  The respondent was unsuccessful in his application.  The Tribunal delivered reasons on 10 July 2014.  The respondent was ordered to pay the applicant's costs of and incidental to the appeal and evident in the reasons at [25] as follows:

    The order of the Tribunal is…

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Details
Case
[2018] FCCA 74
Decision Date

CaseChat Overview and Summary

The case of George Town Council v NEILSEN was heard by Judge McGuire. The dispute concerned the validity of a bankruptcy notice issued by the George Town Council against Mr NEILSEN. The Council sought to rely on an order for costs made by the Tasmanian Civil and Administrative Tribunal (RMPAT) as the basis for the bankruptcy notice.

The central legal issue before the court was whether the RMPAT order for costs, as quantified by a Certificate of Taxation, constituted a "final judgment or final order" for the purposes of section 40(1)(g) of the *Bankruptcy Act 1966* (Cth), which is a prerequisite for the issuance of a bankruptcy notice under section 41 of the same Act. Specifically, the court had to determine if the RMPAT order, once quantified by the Certificate of Taxation and registered with the Supreme Court, could be enforced as a final judgment.

Judge McGuire reasoned that for a bankruptcy notice to be validly issued, it must be based on a final judgment or order the execution of which has not been stayed. While section 28(7) of the *RMPAT Act 2020* (Tas) permits proceedings for the enforcement of an order for costs as if it were a judgment of the court in which it is registered, the court found that the RMPAT order itself had not been registered with the Supreme Court. The Certificate of Taxation, which quantified the costs, had been registered, but the underlying order had not been separately extracted for registration. Furthermore, the court accepted that an order whose quantum is uncertain cannot be enforced until it is quantified.

Consequently, the court found that the RMPAT order for costs, as presented, did not meet the requirements of a final judgment or order capable of supporting the issuance of a bankruptcy notice under the *Bankruptcy Act*. The application for the bankruptcy notice was therefore dismissed.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

S.40 of the Bankruptcy Act provides: (1)A debtor commits an act of bankruptcy and each of the following cases:… (g)If a creditor who has obtained against the debtor a final judgment or final order (my emphasis). Being a judgment or order the execution of which is not been stayed, has served on the debtor in Australia or, by leave of the Court elsewhere, a Bankruptcy Notice under this Act and the debtor does not: (i) Where the notice was served in Australia – within the time specified in the notice;(ii) … Comply with the requirements of the Notice or satisfy the Court that he or she has a counter-claim, set-off or cross-demand equal to or exceeding the amount of the judgment debt or sum payable under the final order, as the case may be, being a counter-claim, set-off or cross-demand that he or she could have set up in the action or proceeding in which the judgment or order was obtained; … (iii) For the purposes of (1)(g):…(b) A judgment or order that is enforceable as or in the same manner as, a final judgment obtained in an action shall be deemed to be a final judgment so obtained and the proceedings in which, or in consequence of which, the judgment or order was obtained shall be deemed to be the action in which it was obtained. S.41 of the Act provides: (1)An Official Receiver may issue a Bankruptcy Notice on the application of the creditor who was obtained against a debtor:(a)A final judgment or final order that: (i)Is of the kind described in paragraph 40 (1) (g); and(ii)Is for an amount of at least $5,000....3. A Bankruptcy Notice shall not be issued in relation to a debtor: (a)Except on the application of a creditor who was obtained against the debtor a final judgment or final order within the meaning of paragraph 40 (1) (g) or a person who, by virtue of 40 (3) (d), is to be deemed to be such a creditor; (b)If, at the time of the application for the issue of the Bankruptcy Notice, execution of a judgment or order to which it relates has been stayed. S.28 of the RMPAT Act provides: … (6)An order for costs under this section may be registered in a Court having jurisdiction for the recovery of debts of the amount ordered to be paid by or under the order.(7)Proceedings for the enforcement of an order for costs under this section may be taken as if the order were a judgment of the Court in which the order is registered. Following the same course of consideration as the Registrar, I am first to determine whether the order quantified by the Certificate is able to be enforced pursuant to s.28(7) of the RMPAT Act? It is clear that it is the Certificate of Taxation quantifying the costs that has been registered with the Supreme Court. The order itself has not been registered and this is conceded by the applicant. I accept the applicant’s submission to the effect that the order is inherent in the Tribunal’s reasons and not taken out separately and hence cannot be extracted out of the reasons for registration with the Court. I also accept that, in any event, an order in such uncertain terms as to quantum cannot be enforced until the amount required to be paid by the respondent is quantified.

Ratio Decidendi

Legal Principle Established

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