Leader Computers Pty Ltd v Johnson - [2012] FCA 716

FEDERAL COURT OF AUSTRALIA
Leader Computers Pty Ltd v Johnson [2012] FCA 716

Citation: Leader Computers Pty Ltd v Johnson [2012] FCA 716

Parties: LEADER COMPUTERS PTY LTD ACN 093 139 354 AS TRUSTEE FOR THE LEADER COMPUTER WHOLESALE TRUST and SYNNEX AUSTRALIA PTY LTD ACN 052 285 88 v ROBERT WILLIAM JOHNSON and CIARA O’BRIEN (IN HER CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF ROBERT WILLIAM JOHNSON)

File number: SAD 140 of 2012

Judge: BESANKO J

Date of judgment: 6 July 2012

Catchwords:
BANKRUPTCY AND INSOLVENCY – application pursuant to s 58(3)(b) of Bankruptcy Act 1966 (Cth) for leave to proceed in actions in the District Court of South Australia against bankrupt for voidance of transfer of property – whether leave should be granted in absence of indication from trustee in bankruptcy as to whether application opposed – where urgency in leave being granted due to impending trial date for District Court actions.

Held: It was appropriate to grant leave pursuant to s 58(3)(b) of the Act.

Legislation: Bankruptcy Act 1966 (Cth) subs 58(3)
Law of Property Act 1936 (SA) s 86

Cases cited: Mango Media Pty Ltd v Velingos (2008) 216 FLR 176, cited
Stoker (Trustee), in the Matter of Starr (Bankrupt) v Starr [2011] FCA 746, cited

Date of hearing: 3 July 2012

Place: Adelaide

Division: GENERAL DIVISION

Category: Catchwords

Number of paragraphs: 24

Counsel for the Applicants: Mr G Stathopoulos

Solicitor for the Applicants: Monteleone Lawyers

Counsel for the First Respondent: Mr M Esau

Counsel for the Second Respondent: The Second Respondent did not appear

IN THE FEDERAL COURT OF AUSTRALIA

SOUTH AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION

SAD 140 of 2012

IN THE MATTER OF THE BANKRUPT ESTATE OF ROBERT WILLIAM JOHNSON

BETWEEN:
LEADER COMPUTERS PTY LTD ACN 093 139 354 AS TRUSTEE FOR THE LEADER COMPUTER WHOLESALE TRUST AND SYNNEX AUSTRALIA PTY LTD ACN 052 285 88
Applicants

AND:
ROBERT WILLIAM JOHNSON AND CIARA O'BRIEN (IN HER CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF ROBERT WILLIAM JOHNSON)
Respondents

JUDGE:

BESANKO J

DATE OF ORDER:

3 JULY 2012

WHERE MADE:

ADELAIDE

THE COURT ORDERS THAT:
1.Leave be granted to the applicants to take fresh steps in and continue with District Court of South Australia proceedings number DCCIV-10-2267 and DCCIV-11-534 (“the District Court proceedings”) against the respondents to the extent necessary:
a.To enable the District Court to determine the applicants’ entitlement to relief specified in the Summons and Statement of Claim in the proceedings specified in paragraph 1 above;
b.Seeking leave to join the second respondent, or any registered trustee in bankruptcy appointed in lieu of the second respondent that may consent to administer the bankruptcy, to the District Court proceedings as a defendant;

2.For the purpose of Order 1, leave to continue with the District Court proceedings be deemed to have been granted on 15 November 2011.
3.It be a condition of leave being granted that the applicants not take any step to enforce any judgment given or order against the…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Leader Computers Pty Ltd v Johnson

Details

AGLC: Leader Computers Pty Ltd v Johnson [2012] FCA 716
Case: [2012] FCA 716
Decision Date: 6 July 2012

CaseChat Overview and Summary

The case of Leader Computers Pty Ltd v Johnson involved an application for leave to proceed with actions in the District Court of South Australia against a bankrupt, specifically seeking the voidance of a transfer of property. The applicants, Leader Computers, sought relief under section 58(3)(b) of the Bankruptcy Act 1966 (Cth), which pertains to applications for leave to institute or continue legal proceedings against a bankrupt. The urgency of the matter arose due to an impending trial date in the District Court proceedings, necessitating a prompt decision on whether to grant the requested leave.

The central legal issue before the court was whether leave should be granted in the absence of any indication from the trustee in bankruptcy as to whether they would oppose the application. The urgency of the situation, compounded by the impending trial date, played a significant role in the court's consideration of the application. The court needed to balance the need for timely resolution of the District Court actions against the statutory protections afforded to bankrupts and their trustees under the Bankruptcy Act.

The court found that it was appropriate to grant the leave, considering the urgency of the matter and the necessity to enable the District Court to determine the applicants' entitlement to relief. The court also imposed certain conditions on the grant of leave, including restrictions on the enforcement of any judgment or order without further leave of the court. These conditions were designed to protect the interests of the bankrupt and ensure compliance with the statutory framework governing bankruptcy proceedings.

The court's decision resulted in specific orders being made, which included granting leave to the applicants to take fresh steps in the District Court proceedings, with conditions attached to the enforcement of any judgments. The applicants were also permitted to join any appointed trustee in bankruptcy to the proceedings. The urgency of the situation was addressed by deeming the leave to have been granted on a particular date, facilitating the timely continuation of the District Court actions.

Orders

Orders of the court

1. Leave be granted to the applicants to take fresh steps in and continue with District Court of South Australia proceedings number DCCIV-10-2267 and DCCIV-11-534 (“the District Court proceedings”) against the respondents to the extent necessary:

a. To enable the District Court to determine the applicants’ entitlement to relief specified in the Summons and Statement of Claim in the proceedings specified in paragraph 1 above;

b. Seeking leave to join the second respondent, or any registered trustee in bankruptcy appointed in lieu of the second respondent that may consent to administer the bankruptcy, to the District Court proceedings as a defendant;

2. For the purpose of Order 1, leave to continue with the District Court proceedings be deemed to have been granted on 15 November 2011.

3. It be a condition of leave being granted that the applicants not take any step to enforce any judgment given or order against the first respondent or the second respondent herein by the District Court of South Australia without further leave of this Court, other than:

a. To enforce any charge over or equitable interest in the property at 45 Wattle Avenue, Hove SA 5048 being the whole of the land comprised in Certificate of Title Register Book Volume 5256 Folio 194.

4. Liberty to apply.

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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Citation:		Leader Computers Pty Ltd v Johnson [2012] FCA 716
Parties:		LEADER COMPUTERS PTY LTD ACN 093 139 354 AS TRUSTEE FOR THE LEADER COMPUTER WHOLESALE TRUST and SYNNEX AUSTRALIA PTY LTD ACN 052 285 88 v ROBERT WILLIAM JOHNSON and CIARA O’BRIEN (IN HER CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF ROBERT WILLIAM JOHNSON)
File number:		SAD 140 of 2012
Judge:		BESANKO J
Date of judgment:		6 July 2012
Catchwords:		BANKRUPTCY AND INSOLVENCY – application pursuant to s 58(3)(b) of Bankruptcy Act 1966 (Cth) for leave to proceed in actions in the District Court of South Australia against bankrupt for voidance of transfer of property – whether leave should be granted in absence of indication from trustee in bankruptcy as to whether application opposed – where urgency in leave being granted due to impending trial date for District Court actions. Held: It was appropriate to grant leave pursuant to s 58(3)(b) of the Act.
Legislation:		Bankruptcy Act 1966 (Cth) subs 58(3) Law of Property Act 1936 (SA) s 86
Cases cited:		Mango Media Pty Ltd v Velingos (2008) 216 FLR 176, cited Stoker (Trustee), in the Matter of Starr (Bankrupt) v Starr [2011] FCA 746, cited
Date of hearing:	3 July 2012
Place:	Adelaide
Division:	GENERAL DIVISION
Category:	Catchwords
Number of paragraphs:	24
Counsel for the Applicants:	Mr G Stathopoulos
Solicitor for the Applicants:	Monteleone Lawyers
Counsel for the First Respondent:	Mr M Esau
Counsel for the Second Respondent:	The Second Respondent did not appear

IN THE FEDERAL COURT OF AUSTRALIA
SOUTH AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISION	SAD 140 of 2012

BETWEEN:	LEADER COMPUTERS PTY LTD ACN 093 139 354 AS TRUSTEE FOR THE LEADER COMPUTER WHOLESALE TRUST AND SYNNEX AUSTRALIA PTY LTD ACN 052 285 88 Applicants
AND:	ROBERT WILLIAM JOHNSON AND CIARA O'BRIEN (IN HER CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF ROBERT WILLIAM JOHNSON) Respondents

JUDGE:	BESANKO J
DATE OF ORDER:	3 JULY 2012
WHERE MADE:	ADELAIDE