Macquarie Leasing Pty Ltd v Culleton

Case [2014] FCCA 1714


FEDERAL CIRCUIT COURT OF AUSTRALIA

MACQUARIE LEASING PTY LIMITED v CULLETON [2014] FCCA 1714
Catchwords:
BANKRUPTCY – Sequestration order – opposition based on non-service of Bankruptcy Notice – respondent is unrepresented litigant – whether notice served in accordance with r.16.01 – application to re-open evidence before judgment – solvency – security held by respondent – whether other sufficient cause – sequestration order made.

Legislation:

Bankruptcy Act 1966, s.52(1)

Corporations Act 2001 (Cth)
Transfer of Land Act 1983 (WA)

ANZ Banking Group Ltd v Foyster [2000] FCA 400
Barghouthi v Transfield Pty Ltd [2002] FCA 666
Bhagwanani v Martin (1999) 204 LSJS 449
Burwood Municipal Council v Harvey (1995) 86 LGERA 389
Cavi v Whyte [1932] HCA 6
Carey v Freehills [2014] FCA
Civic Video Pty Ltd v Warburton [2013] FCA 934
Clark v New South Wales (No 2) [2006] NSWSC 914
Dietrich v R [1992] HCA 57; 177 CLR 292
Drake v Stanton [1999] FCA 1635
Farcourt v Mercantile Credits Ltd [1983] HCA 25
Galea v Galea (1990) 19 NSWLR 263
Hamod v State of New South Wales and Anor [2011] NSWCA 375
Inspector-General in Bankruptcy v Bradshaw [2006] FCA 22
MacPherson v R [1981] HCA 46
Michael v Western Australia [2007] WASCA 100
Minogue v Human Rights and Equal Opportunity Commission (1999) 84 FCR 438
NAGA v Minister for Immigration and Multicultural and Indigenous Affairs [2002] FCA 944
Nagy v Ryan [2003] SASC 37
Napiat Pty Ltd v Salfinger; In the Matter of Salfinger (No 7) [2011] FCA 1322
R v Zorad (1990) 19 NSWLR 91
Rajski v Scitec Corporation Pty Ltd (Court of Appeal, 16 June 1986, unreported)
Re Florance; Ex parte Turimelta Properties Pty Ltd [1979] FCA 58
Re Poulson; Ex parte Hempenstall Bros Ltd (No 1) (1929) 1 ABC 54
Robertson v Banham & Co [1997] 1 WLR 446
Smith v New South Wales Bar Association (1992) 176 CLR 256
Skalkos v Recoveries Limited (2004) 141 FCR 107Spotlight Pty Ltd v NCON Australia Ltd [2012] VSCA 232
SZRUR v Minister for Immigration and Border Protection [2013] FCAFC 146
Thomas v Nash [2011] FMCA 661
Tomasevic v Travaglini [2007] VSC 337
Applicant: MACQUARIE LEASING PTY LIMITED ACN 002 674 982
Respondent: RODNEY NORMAN CULLETON
File Number: SYG 3241 of 2013
Judgment of: Judge Altobelli
Hearing dates: 15 July 2014, 17 September 2014
Date of Last Submission: 17 September 2014
Delivered at: Sydney
Delivered on: 31 October 2014

REPRESENTATION

Counsel for the Applicant: Ms Glover
Solicitors for the Applicant: Douros Jackson Lawyers
Respondent: In person

ORDERS

  1. A Sequestration Order be made against the estate of Rodney Norman Culleton.

  2. The Applicant’s costs (including any reserved costs and the costs of all appearances) be taxed and paid from the estate of the respondent in accordance with the Bankruptcy Act 1966.

NOTES

(A)The date of act of bankruptcy is 28 October 2013.

FEDERAL CIRCUIT COURT
OF AUSTRALIA
AT SYDNEY

SYG 3241 of 2013

MACQUARIE LEASING PTY LIMITED ACN 002 674 982

Applicant

And

RODNEY NORMAN CULLETON

Respondent

REASONS…

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AGLC
Macquarie Leasing Pty Ltd v Culleton [2014] FCCA 1714
Case
[2014] FCCA 1714
Decision Date

CaseChat Overview and Summary

This matter concerned an appeal from a decision of the Federal Circuit Court. The appellant, Macquarie Leasing Pty Ltd, sought to recover outstanding payments under a lease agreement from the respondent, Mr Culleton. Mr Culleton represented himself in the proceedings.

The primary legal issue before the Full Court of the Federal Court was whether the trial judge had erred in failing to adequately assist Mr Culleton, an unrepresented litigant, in understanding the court's procedures and his rights, thereby potentially rendering the trial unfair. The Court considered the overarching duty of courts to ensure a fair trial for all parties, as established in cases such as *Dietrich v R*.

The Court reasoned that while judges have a duty to ensure unrepresented litigants are not disadvantaged by their lack of representation, this duty is not absolute. It requires judges to provide sufficient information about court practice and procedure, where reasonably practicable, to ensure a fair trial. However, this assistance must not extend to advising the litigant on how to exercise their rights or conducting the case on their behalf. The judge must remain an impartial adjudicator, balancing the need to assist the unrepresented party with the requirement of fairness to all parties and the preservation of the adversarial nature of the proceedings. The Court noted that the boundaries of legitimate intervention are flexible and depend on the specific circumstances of the case, always measured against the touchstone of fairness.

The Full Court found that the trial judge had not erred in their conduct of the proceedings and dismissed the appeal.

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

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Ratio Decidendi

Legal Principle Established

The Full Court of the Federal Court in SZRUR v Minister for Immigration and Border Protection [2013] FCAFC 146 (29 November 2013) recently considered the Court’s duty to unrepresented litigants at [37] quoting extensively from the case cited: Consideration37.In Hamod v State of New South Wales and Anor [2011] NSWCA 375 the Court, Beazley, Giles and Whealy JJA, said:Courts’ duty to unrepresented litigants[309] Courts have an overriding duty to ensure that a trial is fair: Dietrich v R [1992] HCA 57; 177 CLR 292. This entails ensuring that the trial is conducted fairly and in accordance with law: MacPherson v R [1981] HCA 46; 147 CLR 512 per Gibbs CJ and Wilson J at [16] 525. The duty reposes in the individual judicial officer hearing a case. In the context of an unrepresented litigant, the duty requires that a person does not suffer a disadvantage from exercising the recognised right of a litigant to be self-represented: R v Zorad (1990) 19 NSWLR 91 at 94–95. In MacPherson Mason J, at [31] 534, noted that:A trial in which a judge allows an accused to remain in ignorance of a fundamental procedure which, if invoked, may prove to be advantageous to him, can hardly be labelled as “fair”.[310] However, the court’s duty is not solely to the unrepresented litigant. The obligation is to ensure a fair trial for all parties. For this reason, the duty is usually stated in terms that require that the impartial function of the judge is preserved, whilst also requiring the judge to intervene where necessary to ensure the trial is fair and just: Tomasevic v Travaglini [2007] VSC 337; 17 VR 100 at [95]; Barghouthi v Transfield Pty Ltd [2002] FCA 666; 122 FCR 19, 23; NAGA v Minister for Immigration and Multicultural and Indigenous Affairs [2002] FCA 944, [11]; Nagy v Ryan [2003] SASC 37, [52]–[53].[311] Insofar as the duty relates specifically to an unrepresented party, it has been said that a trial judge has an obligation to take appropriate steps to ensure that the unrepresented litigant has sufficient information about the practice and procedure of the court, so far as is reasonably practicable for the purpose of ensuring a fair trial. The application of that principle will vary depending upon the circumstances of the case: Jae Kyung Lee v Bob Chae-Sang Cha per Basten JA at [48]. See also Abram v Bank of New Zealand (1996) ATPR 41-507, 43,341, 43,347; Microsoft Corporation v Ezy Loans Pty Ltd (2004) 63 IPR 54; Pezos v Police (2005) 94 SASR 154.[312] Although the duty of a trial judge to assist an unrepresented litigant is cast in active terms, it does not extend to advising the accused as to how his or her rights should be exercised: R v Gidley (1984) 3 NSWLR 168. Rather, the judge has to put the unrepresented litigant in the position of being able to make an effective choice, a duty which applies notwithstanding the adversarial character of a criminal trial: McPherson per Mason J at 534. The duty is the same in a civil proceeding, with such modifications as are called for to take account of civil procedures. However, it is not the function of the court to give judicial advice to, or conduct the case on behalf of, the unrepresented litigant: Bhagwanani v Martin (1999) 204 LSJS 449; [1999] SASC 406; Clark v New South Wales (No 2) [2006] NSWSC 914.[313] The touchstone at all times remains that of fairness. In Rajski v Scitec Corporation Pty Ltd (Court of Appeal, 16 June 1986, unreported) Samuels JA, at 14, stated:But the court should be astute to see that it does not extend its auxiliary role so as to confer upon a litigant in person a positive advantage over the represented opponent … At all events, the absence of legal representation on one side ought not to induce a court to deprive the other side of one jot of its lawful entitlement … An unrepresented party is as much subject to the rules as any other litigant.[314] Thus, a trial judge is entitled to reprimand an unrepresented litigant if the judge believes that the litigant is trifling with the court: see Galea v Galea (1990) 19 NSWLR 263 at 283 per Meagher JA; Michael v Western Australia [2007] WASCA 100 at [64] per Steytler P (McLure JA and Miller AJA agreeing); Jae Kyung Lee v Bob Chae-Sang Cha at [84] per Basten JA.[315] There may be a fine tension in striking the balance between providing assistance to an unrepresented litigant and ensuring a fair trial for all parties. However, it is the task of the judge to strike that balance. In Minogue v Human Rights and Equal Opportunity Commission (1999) 84 FCR 438 at 446 the Full Federal Court dealt with the tension between the duty of the trial judge to ensure a fair trial and the requirement of impartiality:A trial judge often faces something of a dilemma. While he or she may be bound to provide some advice and assistance to an unrepresented litigant, the authorities make it clear that the Judge should not intervene to such an extent that he or she cannot maintain a position of neutrality in the litigation: Burwood Municipal Council v Harvey (1995) 86 LGERA 389 at 397 (NSW CA), per Kirby P. However, the boundaries of legitimate intervention are flexible and will be influenced by the need for intervention to ensure a fair and just trial: Panagopoulos v Southern Healthcare Network (unreported, Supreme Court, Vic, Smith J, 15 September 1997) at 6.[316] The position can be stated no more clearly than reiterating that the judge must remain at all times the impartial adjudicator of the matter, measured against the touchstone of fairness.