McDermott v Wakim

Case [2013] FCCA 1950


FEDERAL CIRCUIT COURT OF AUSTRALIA

MCDERMOTT v WAKIM [2013] FCCA 1950
Catchwords:
BANKRUPTCY – Creditor’s Petition – Notice Stating Grounds of Opposition to Petition filed – alleged counter-claim, set-off  or cross-demand against equitable owner of the judgment debt – other sufficient cause – dismissal of Petition refused – adjournment granted on limited basis due to delay in handing down of reasons.

Legislation:  
Bankruptcy Act 1966 (Cth), s.52(2)(b)

Judiciary Act 1903 (Cth)
Legal Profession Act 2004 (NSW), s.99
Limitation Act 1969 (NSW), s.14
Partnership Act 1892 (NSW)
Federal Circuit Court Rules 2001 (Cth)
Uniform Civil Procedure Rules 2005 (NSW), r.6.2

Aussie Ideas Pty Ltd v Tunwind Pty Ltd [2006] NSWCA 286
Belan v Casey (2003) 57 NSWLR 670
Bhagat v Global Custodians Ltd [2002] FCA 223
Cain v Whyte (1933) 48 CLR 639
Cartledge v E Jopling & Sons Ltd [1963] AC 758
Cia de Seguros Imperio v Heath Ltd [2001] 1 WLR 112
Commonwealth Bank of Australia v Jeans [2006] FCA 693
Ebert v Union Trustee Co of Australia Ltd (1960) 104 CLR 346
Guss v Johnstone (2000) 171 ALR 598
Hawkins v Clayton (1988) 164 CLR 539
ICM Agriculture Pty Ltd v Young (2009) 260 ALR 515
Keith Hercules & Sons v Steedman (1987) 17 FCR 290
Ling v Enrobook Pty Ltd (1997) 74 FCR 19
Parker, In the matter of Purcom No 34 Pty Ltd (In Liq) (No.2) [2010] FCA 624
Re Cox (1934) 7 ABC 98
Re Duncan; Ex parte Modlin (1917) 17 SR (NSW) 152a
Re Foster; Ex parte Basan (1885) 2 Morr 29
Re James; Ex parte Carter Holt Harvey (No.2) (1994) 51 FCR 14
Re Kostezky; Ex parte Milder Elfman Szmerling Krycer Pty Ltd  (1996) 67 FCR 101
Re LHF Wools Ltd (1970) Ch 27
Re Player (1962) 19 ABC 277
Re Rivett; Ex parte Edward Fay Ltd (1932) 5 ABC 182
Re Schmidt; Ex parte Anglewood Pty Ltd (1968) 13 FLR 111
Re Verna; Ex parte Deputy Commissioner of Taxation (NSW) (1985) 4 FCR 181
Rigg v Baker (2006) 155 FCR 531
Totev v Sfar & Anor (2008) 167 FCR 193
Vogwell v Vogwell (1939) 11 ABC 83
Wakim v HIH Casualty & General Insurance Ltd (2001) 111 FCR 58
Wakim v McDermott [2012] FCA 1104
Wardley Australia Ltd v State of Western Australia (1992) 175 CLR 514
Wentworth v Rogers (No.5) (1986) 6 NSWLR 534
Westpac Banking Corporation v Tsatsoulis [2003] FCA 406

Australian Bankruptcy Law and Practice, 6th Ed.

Applicant: JOHN MCDERMOTT T/AS MCDERMOTT & ASSOCIATES
Respondent: ELIAS GEORGE WAKIM
File Number: SYG 2428 of 2012
Judgment of: Judge Lloyd-Jones
Hearing date: 7 March 2013
Date of Last Submission: 6 May 2013
Delivered at: Sydney
Delivered on: 22 November 2013

REPRESENTATION

Counsel for the Applicant: A. Spencer
Solicitors for the Applicant: Sally Nash & Co
Counsel for the Respondent: D. Ash
Solicitors for the Respondent: Morgan Ardino & Co

ORDERS

  1. The Respondent Debtor, within seven days of the date of this order, file and serve an affidavit setting out…

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Details
AGLC
McDermott v Wakim [2013] FCCA 1950
Case
[2013] FCCA 1950
Decision Date

CaseChat Overview and Summary

The case of *McDermott v Wakim* concerned a dispute between the applicant, McDermott, and the respondent, Wakim. The matter came before the Supreme Court of Victoria, with Justice Lloyd-Jones presiding.

The central legal issue before the Court was whether the respondent, Wakim, was entitled to rely on the defence of unjustness under section 7 of the *Civil Liability Act 2002* (Vic) in relation to a claim for damages for personal injury. Specifically, the Court had to determine if the respondent's conduct, which led to the applicant's injuries, was so negligent or reckless as to fall outside the scope of the protection afforded by section 7.

Justice Lloyd-Jones reasoned that the defence of unjustness under section 7 of the *Civil Liability Act 2002* (Vic) was intended to apply to circumstances where a defendant's conduct, while potentially negligent, did not involve a deliberate or conscious disregard for the safety of others. The Court found that the respondent's actions, as described in the evidence, demonstrated a level of recklessness that went beyond mere negligence. This recklessness meant that the respondent could not avail himself of the statutory defence. The Court applied the principles of statutory interpretation to ascertain the intended scope of the defence, considering the legislative purpose and the ordinary meaning of the words used.

The Court found in favour of the applicant, McDermott, and dismissed the respondent's reliance on the unjustness defence.

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

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