FEDERAL COURT OF AUSTRALIA
Mader v O’Halloran [2015] FCA 1464
Citation: Mader v O’Halloran [2015] FCA 1464 Parties: BRADLEY MADER and LOREN AMANDA BECKWITH v DEBORAH O'HALLORAN and JOYCE BEE HONG LIM File number(s): WAD 258 of 2015 Judge(s): SIOPIS J Date of judgment: 21 December 2015 Catchwords: BANKRUPTCY AND INSOLVENCY – application for leave to commence and take fresh steps in a proceeding – s 58(3) of the Bankruptcy Act 1966 (Cth) – nunc pro tunc – leave is sought in respect of a claim brought against a bankrupt in the Magistrates Court of Western Australia – whether the fact that judgment had been entered precluded the Court from granting leave in respect of that proceeding retrospectively. Legislation: Bankruptcy Act 1966 (Cth) ss 58(3), 58(3)(b), 60(2) Cases cited: 7Steel Building Solutions Pty Ltd v Wright [2011] FCA 328
Done v Financial Wisdom Limited [2008] FCA 1706
Re McMaster; Ex parte McMaster (1991) 33 FCR 70
Allanson v Midland Credit Ltd (1977) 16 ALR 43
Stoker (Trustee), in the matter of Starr (Bankrupt) v Starr [2011] FCA 746
Veghelyi; Smith v Official Trustee in Bankruptcy (1993) 45 FCR 413
Singh v Official Trustee in Bankruptcy (2007) 214 FLR 84Date of hearing: 15 July 2015 Date of last submissions: 31 July 2015 Place: Perth Division: GENERAL DIVISION Category: Catchwords Number of paragraphs: 32 Counsel for the First and Second Applicants: Ms N McVay Solicitor for the First and Second Applicants: McVay Bates & Associates Counsel for the First Respondent: The First Respondent appeared in person. Counsel for the Second Respondent: The Second Respondent did not appear.
IN THE FEDERAL COURT OF AUSTRALIA
WESTERN AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISION
WAD 258 of 2015
BETWEEN: BRADLEY MADER
First ApplicantLOREN AMANDA BECKWITH
Second ApplicantAND: DEBORAH O'HALLORAN
First RespondentJOYCE BEE HONG LIM
Second Respondent
JUDGE:
SIOPIS J
DATE OF ORDER:
21 DECEMBER 2015
WHERE MADE:
PERTH
THE COURT ORDERS THAT:
1.To the extent that such leave may be necessary, the applicants have leave nunc pro tunc pursuant to s 58(3) of the Bankruptcy Act 1966 (Cth):
(a)to take fresh steps after 16 May 2014 in the applicants’ claim (367/2012) against the first respondent, which on 13 December 2013 was consolidated with the applicants’ claim (2420/2013) against the second respondent, in the Magistrates Court of Western Australia (the Magistrates Court proceeding);
(b)to commence on 8 January 2015 appeal 122 of 2014 in the District Court of Western Australia and thereafter to take such fresh steps in that appeal proceeding as may be necessary to determine the appeal.
2.It is a condition of the grant of leave in Order 1 that the applicants do not, without the further leave of this Court, take any steps to enforce the judgment for $75,000 and costs obtained in the Magistrates Court proceeding against the bankrupt estate of the first respondent.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
IN THE FEDERAL COURT OF AUSTRALIA
WESTERN AUSTRALIA DISTRICT…
Continue reading Mader v O'Halloran
Sign in free to access the full text
- AGLC
- Mader v O'Halloran [2015] FCA 1464
- Case
- [2015] FCA 1464
- Decision Date
CaseChat Overview and Summary
The court had to determine if the entry of judgment in the Magistrates Court proceeding prevented the granting of leave under section 58(3) of the Bankruptcy Act 1966 (Cth). The applicants argued that the leave should be granted to enable them to pursue their claims despite the bankruptcy proceedings. The court examined whether the Bankruptcy Act allowed for such retrospective leave and if the principles of justice warranted granting the leave.
The Federal Court found that the Bankruptcy Act does permit leave to be granted retrospectively, and the entry of judgment did not preclude the granting of such leave. The court reasoned that it was in the interests of justice to allow the applicants to take necessary steps to pursue their claims, provided they did not enforce the judgment against the bankrupt estate without further leave. The court therefore granted leave nunc pro tunc, allowing the applicants to take fresh steps in their proceedings.
The final orders of the court granted the applicants leave to take fresh steps in their claims against the respondents in both the Magistrates Court and the District Court, subject to certain conditions. Notably, the applicants were not permitted to enforce the judgment against the bankrupt estate without further leave from the court.
Orders
Orders of the court
1. To the extent that such leave may be necessary, the applicants have leave nunc pro tunc pursuant to s 58(3) of the Bankruptcy Act 1966 (Cth):
(a) to take fresh steps after 16 May 2014 in the applicants’ claim (367/2012) against the first respondent, which on 13 December 2013 was consolidated with the applicants’ claim (2420/2013) against the second respondent, in the Magistrates Court of Western Australia (the Magistrates Court proceeding);
(b) to commence on 8 January 2015 appeal 122 of 2014 in the District Court of Western Australia and thereafter to take such fresh steps in that appeal proceeding as may be necessary to determine the appeal.
2. It is a condition of the grant of leave in Order 1 that the applicants do not, without the further leave of this Court, take any steps to enforce the judgment for $75,000 and costs obtained in the Magistrates Court proceeding against the bankrupt estate of the first respondent.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.