Goodman v Westpac Banking Corporation

Case [2011] FCA 1327


FEDERAL COURT OF AUSTRALIA

Goodman v Westpac Banking Corporation [2011] FCA 1327

Citation: Goodman v Westpac Banking Corporation [2011] FCA 1327
Parties: MORRIS GOODMAN and GRETA GOODMAN v WESTPAC BANKING CORPORATION (ABN 033 007 457 141)
File number: VID 984 of 2010
Judge: BROMBERG J
Date of judgment: 16 November 2011
Legislation: Bankruptcy Act 1966 (Cth) s 60
Date of hearing: 16 November 2011
Place: Melbourne
Division: GENERAL DIVISION
Category: No Catchwords
Number of paragraphs: 3
Counsel for the Applicants: The Applicants did not appear
Counsel for the Respondent: Mr C Nichol
Solicitor for the Respondent: Gadens Lawyers

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 984 of 2010

BETWEEN:

MORRIS GOODMAN
First Applicant

GRETA GOODMAN
Second Applicant

AND:

WESTPAC BANKING CORPORATION (ABN 033 007 457 141)
Respondent

JUDGE:

BROMBERG J

DATE OF ORDER:

16 NOVEMBER 2011

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The Application of the first applicant dated 17 November 2010 be dismissed.

2.The title of the proceeding be amended to remove Morris Goodman as the first applicant.

3.Any application by the second applicant for leave to amend her Application be filed and served on or before 20 January 2012 together with a supporting affidavit which exhibits the proposed Amended Application.

4.Any affidavit in opposition to the grant of leave be filed and served by the respondent on or before 27 January 2012.

5.The proceeding be adjourned to a Directions Hearing at 9.30am on 3 February 2012, including for the purpose of considering whether the Court should permit the second applicant to be represented by a tutor or a Mackenzie friend and, if so, who should represent the second applicant.

6.The respondent’s costs of the Directions Hearing be paid by the second applicant.

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 984 of 2010

BETWEEN:

MORRIS GOODMAN
First Applicant

GRETA GOODMAN
Second Applicant

AND:

WESTPAC BANKING CORPORATION (ABN 033 007 457 141)
Respondent

JUDGE:

BROMBERG J

DATE:

16 NOVEMBER 2011

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. The Application before the Court was made on 17 November 2010 by Morris Goodman who is the first applicant and Greta Goodman, the second applicant. 

  2. On 17 December 2010 the first applicant Mr Goodman was declared a bankrupt and Mr Warren B White was appointed trustee of Mr Goodman’s estate. Section 60(2) of the Bankruptcy Act 1966 (Cth) (“the Bankruptcy Act”) provides that an action commenced by a person who subsequently becomes a bankrupt is, upon his or her becoming a bankrupt, stayed until the trustee makes an election in writing to prosecute or discontinue the action. Section 60(3) is in the following terms:

    If the trustee does not make such an election within 28 days after notice of the action is served upon him or her by a defendant or other party to the action he or she shall be deemed to have abandoned the action.

  3. I am satisfied that notice of this proceeding has been provided to Mr Goodman’s Trustee. I am also satisfied that the Trustee has not made an election pursuant to s 60(3) of the Bankruptcy Act. Accordingly, by operation of that provision it is deemed Mr Goodman has abandoned his action. In the circumstances it is appropriate that orders be made which I intend to now make to dismiss the application of the first applicant and for the title of the proceeding to be amended accordingly. I will also make orders dealing with the further disposition of the application of Ms Goodman.

I certify that the preceding three (3) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Bromberg.

Associate:

Dated:        21 November 2011

Details
AGLC
Goodman v Westpac Banking Corporation [2011] FCA 1327
Case
[2011] FCA 1327
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Goodman v Westpac Banking Corporation involves a dispute between the applicants, Morris Goodman and his daughter, and the respondent, Westpac Banking Corporation. The applicants seek to amend their proceedings against the bank to address issues of undue influence and misrepresentation concerning a loan transaction. The court was tasked with determining whether the applicants should be granted leave to amend their application and whether the second applicant should be permitted to be represented by a tutor or a Mackenzie friend.

The legal issues before the court included whether the applicants had standing to amend their claims, the procedural requirements for amending a court application, and the appropriateness of appointing a representative for the second applicant. The court considered the statutory provisions and case law relating to amendments to pleadings, the discretion of the court to permit representation by a tutor or Mackenzie friend, and the circumstances of the second applicant.

The court dismissed the application of the first applicant, Morris Goodman, from the proceedings and ordered that the title of the proceeding be amended to exclude him. It set out a timetable for any applications to amend the second applicant's proceedings and determined the procedural steps for such applications. The court also directed that the proceedings be adjourned to a Directions Hearing to consider the second applicant's representation. The court found that the respondent's costs of the Directions Hearing were to be borne by the second applicant.

The orders reflect the court's determination of the procedural issues and the setting of a timeline for further steps in the proceedings. The court's decision on the substantive issues of undue influence and misrepresentation is reserved for the Directions Hearing and subsequent stages of the litigation.

Orders

Orders of the court

1. The Application of the first applicant dated 17 November 2010 be dismissed.

2. The title of the proceeding be amended to remove Morris Goodman as the first applicant.

3. Any application by the second applicant for leave to amend her Application be filed and served on or before 20 January 2012 together with a supporting affidavit which exhibits the proposed Amended Application.

4. Any affidavit in opposition to the grant of leave be filed and served by the respondent on or before 27 January 2012.

5. The proceeding be adjourned to a Directions Hearing at 9.30am on 3 February 2012, including for the purpose of considering whether the Court should permit the second applicant to be represented by a tutor or a Mackenzie friend and, if so, who should represent the second applicant.

6. The respondent’s costs of the Directions Hearing be paid by the second applicant.

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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