McGee and Kerr

Case [2013] FCCA 402


FEDERAL CIRCUIT COURT OF AUSTRALIA

MCGEE & KERR [2013] FCCA 402
Catchwords:
FAMILY LAW – Alteration of property interests – de facto relationship – when it commenced and concluded – assessment of contribution.

Legislation:

Family Law Act 1975, ss.4AA, 79, 90SB, 90SF, 90SM

Family Law Rules 2004

Cases cited:
Aitken & Deakin [2010] FMCAfam 35
Clisbey & Vas [2011] FamCA 611
Hickey & Hickey & Attorney-General of the Commonwealth of Australia (Intervenor) (2003) FLC 93-143
Norbis v Norbis (1986) 161 CLR 513
Taisha & Peng [2012] FamCA 385
Webb & Douglas [2012] FMCAfam 1049
Applicant: MR MCGEE
Respondent: MS KERR
File Number: SYC 3088 of 2012
Judgment of: Judge Altobelli
Hearing dates: 14 December 2012 and 22 April 2013
Date of Last Submission: 22 April 2013
Delivered at: Sydney
Delivered on: 4 June 2013

REPRESENTATION

Counsel for the Applicant: Mr Levy
Solicitors for the Applicant: Dimocks Family Lawyers
The Respondent (self-represented)

ORDERS

  1. That within four (4) months from the date of these Orders, the Respondent pay to the Applicant the sum of $150,000 (“the Principal Sum”).

  2. That if the said Principal Sum is not paid within the period specified in Order 1, the Respondent pay to the Applicant interest on the said sum pursuant to Rule 17.03 of the Family Law Rules 2004 and calculated form the due date until the date of payment in full on so much as is from time to time outstanding.

  3. That in the event the Respondent has not complied with Order 1 above, within five (5) months from the date of these Orders, the Respondent shall forthwith and thereafter do all such acts and things and sign all such deeds, documents, instruments and writings as may be necessary to effect a sale of the property known as Property H (“the Property H”) and more particularly described in Certificate of Title Folio Identifier (omitted) and in particular shall:

    (a)Immediately list the Property H property for sale by public auction with such firm of estate agents as may be nominated by the Applicant (“the auctioneers”);

    (b)Give all necessary instructions to a firm of Solicitors (“the Solicitors”) to have the primary conduct of the sale and to prepare a contract for sale, with the Solicitors to again be appointed by the Applicant;

    (c)Cooperate in every way with the auctioneers, including but not limited to, making the keys available to the auctioneers and allowing inspection of the property at all reasonable times requested by the auctioneers, and ensuring that the Property H property including the grounds are in a neat and clean condition at the time of inspection by the auctioneers and prospective purchasers;

    (d)Execute all documents requested by the auctioneers and the Solicitors in relation to the sale of the Property H property;

    (e)Attend the auction sale and, in the event that the Property H property is passed in at auction, negotiate with the highest bidder at the auction;

    (f)Accept the advice of the auctioneers as to a suitable reserve price, and as to the…

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MCGEE & KERR [2013] FCCA 402
Case
[2013] FCCA 402
Decision Date

CaseChat Overview and Summary

In *McGee and Kerr*, heard by Judge Altobelli, the dispute concerned the division of property and the financial relationship between the parties. The court was required to make orders concerning the payment of a sum of money, the sale of a property, and the allocation of remaining assets and liabilities.

The court determined the legal issues surrounding the finalisation of the parties' financial affairs. This involved establishing a clear mechanism for the payment of a principal sum, including provisions for interest in case of default. Furthermore, the court addressed the sale of a specific property, outlining the steps and responsibilities of the parties in facilitating its sale and the distribution of the proceeds. The court also considered how remaining property and debts would be handled, aiming to achieve a final determination of the parties' financial relationship.

The court ordered that the respondent pay the applicant $150,000 within four months. If this sum was not paid, interest would accrue. In the event of non-compliance with the payment order, the respondent was directed to take all necessary steps to sell a specified property within five months. These steps included listing the property for auction with agents and solicitors nominated by the applicant, cooperating with the sale process, and accepting advice regarding the sale price. The proceeds of the sale were to be applied first to sale costs, then legal costs, then the discharge of any mortgage, followed by the principal sum and interest owed to the applicant, with any balance to the respondent. The court also ordered that each party retain property and chattels in their possession and be liable for their own debts, indemnifying the other against any such liabilities. A Registrar was appointed to execute documents if a party defaulted, and the orders were intended to finally determine the parties' financial relationship.

Orders

Orders of the court

1.

That within four (4) months from the date of these Orders, the Respondent pay to the Applicant the sum of $150,000 (“the Principal Sum”).

2.

That if the said Principal Sum is not paid within the period specified in Order 1, the Respondent pay to the Applicant interest on the said sum pursuant to Rule 17.03 of the Family Law Rules 2004 and calculated form the due date until the date of payment in full on so much as is from time to time outstanding.

3.

That in the event the Respondent has not complied with Order 1 above, within five (5) months from the date of these Orders, the Respondent shall forthwith and thereafter do all such acts and things and sign all such deeds, documents, instruments and writings as may be necessary to effect a sale of the property known as Property H (“the Property H”) and more particularly described in Certificate of Title Folio Identifier (omitted) and in particular shall:

(a) Immediately list the Property H property for sale by public auction with such firm of estate agents as may be nominated by the Applicant (“the auctioneers”);

(b) Give all necessary instructions to a firm of Solicitors (“the Solicitors”) to have the primary conduct of the sale and to prepare a contract for sale, with the Solicitors to again be appointed by the Applicant;

(c) Cooperate in every way with the auctioneers, including but not limited to, making the keys available to the auctioneers and allowing inspection of the property at all reasonable times requested by the auctioneers, and ensuring that the Property H property including the grounds are in a neat and clean condition at the time of inspection by the auctioneers and prospective purchasers;

(d) Execute all documents requested by the auctioneers and the Solicitors in relation to the sale of the Property H property;

(e) Attend the auction sale and, in the event that the Property H property is passed in at auction, negotiate with the highest bidder at the auction;

(f) Accept the advice of the auctioneers as to a suitable reserve price, and as to the acceptance of an offer below the reserve price, in the event that the Property H property is passed in at auction;

(g) In the event that the Property H property does not sell at auction, re-list the said property for sale by auction at intervals of no more than six (6) weeks, upon the same terms and conditions as set out above, until the property is sold;

(h) Upon settlement of the sale of the property, procure that the proceeds of such sale be distributed as follows, and according to the following priority:

(i) In payment of the auctioneers’ costs on the sale;

(ii) In payment of legal costs and disbursements incidental to the sale;

(iii) In payment of the amount required to discharge the mortgage secured over the property;

(iv) In payment to the Applicant of the Principal Sum still outstanding to him together with interest thereon, calculated in accordance with Order 2;

(v) The balance thereafter remaining to be paid to the Respondent.

4.

That otherwise as provided herein, the Applicant and Respondent shall each be entitled to retain to the exclusion of the other all property and chattels of whatsoever nature and kind in the possession of such party as at the date of these Orders, and for that purpose bank accounts are deemed to be in the possession of the person whose name appears on the bank records thereof, insurance policies are deemed to be in the possession of the beneficiary thereof, superannuation entitlements are deemed to be in the possession of the person who is named as the worker.

5.

That otherwise than provided herein, the Applicant and the Respondent shall each otherwise be and remain liable for any debts in their own name as at the date of these Orders, and in this respect, shall indemnify and keep indemnified the other form any liability in relation thereto.

6.

That in default of the parties or either of them doing all acts and things and executing all such documents as are necessary to give effect to these Orders, a Registrar of the Family Court of Australia at a Sydney Registry be appointed pursuant to s.106A to execute all such documents in the name of the party in default and to do all such acts and things necessary to give validity and operation to the said orders.

7.

That pursuant to s.81 of the Family Law Act 1975 the parties intend that these Orders shall as far as practicable finally determine the financial relationship between them and avoid further proceedings between them.

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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