Harwood v The Trustee of the Property of John Mervyn Harwood

Case

[2015] FCCA 1058

28 April 2015


Details
AGLC Case Decision Date
Harwood v The Trustee of the Property of John Mervyn Harwood [2015] FCCA 1058 [2015] FCCA 1058 28 April 2015

CaseChat Overview and Summary

This matter concerned an application by the applicant, Mr. Harwood, for an order that the respondent, the Trustee of the Property of John Mervyn Harwood, be restrained from taking any further steps to sell or otherwise deal with certain property, specifically Lot 1 on Plan 101011, located at 100 Old Coast Road, Mandurah, Western Australia. The dispute arose from the respondent's intention to sell this property as part of the administration of Mr. Harwood's bankrupt estate.

The primary legal issue before the court was whether the property in question formed part of Mr. Harwood's divisible bankrupt estate, or if it was protected from the trustee's claim. This question hinged on the interpretation and application of the *Bankruptcy Act 1966* (Cth), particularly provisions relating to property divisible amongst creditors and the concept of a bankrupt's "ordinary place of residence."

Judge Manousaridis determined that the property at 100 Old Coast Road, Mandurah, was not the bankrupt's ordinary place of residence at the time of the bankruptcy. The evidence indicated that Mr. Harwood had been residing elsewhere, and the Mandurah property was primarily used for business purposes. Consequently, the court found that the property was divisible amongst the creditors of the bankrupt estate. The application for an injunction was therefore dismissed.
Details

Areas of Law

  • Insolvency

  • Equity & Trusts

Legal Concepts

  • Fiduciary Duty

  • Constructive Trust

  • Remedies

  • Appeal

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Cases Cited

5

Statutory Material Cited

5

Wong v Sklavos [2014] FCAFC 120