Mulhern v Pearce (No 3)

In Mulhern v Pearce (No 3), the trustees of Mr Mulhern’s bankruptcy estate sought two orders from the Court. First, they applied for leave to reopen the proceeding to adduce further evidence. Second, they sought a vexatious proceedings order, prohibiting Mr Mulhern from instituting proceedings against them without leave of the Court. The application was heard by Collier J in the Federal Circuit Court of Australia. The central issue before the court was whether the proceedings were vexatious and whether the Court’s discretion should be exercised in favour of making the orders sought by the trustees. The court found that the proceedings were vexatious, as they were instituted without reasonable ground and caused delay and detriment. The court also found that the requirements of s 37AO of the Federal Court Act were satisfied and that the Court’s discretion should be exercised in favour of making the orders sought by the trustees. The court allowed the trustees’ application for leave to reopen the proceeding to adduce further evidence and granted a vexatious proceedings order prohibiting Mr Mulhern from instituting proceedings against the trustees without leave of the Court.