FEDERAL COURT OF AUSTRALIA
Nicholls (Trustee) v Hertslet [2016] FCA 655
File number: NSD 1657 of 2015 Judge: BROMWICH J Date of judgment: 3 June 2016 Catchwords: PRACTICE AND PROCEDURE – Harman v Home Office implied undertaking not to use documents produced by process of a court for a purpose outside those proceedings – application for leave to use documents produced by a consent order in proceedings in the Supreme Court of New South Wales – whether implied undertaking arises for Trustee in bankruptcy in relation to documents for the administration of an estate to which the bankrupt is a beneficiary – failure to seek leave before using documents – meaning of ‘special circumstances’ for the grant of leave Legislation: Bankruptcy Act 1966 (Cth), s 30
Federal Court Rules 2011, rr 1.33, 26.12(2)(c) and 40.04(a)
Cases cited: Binetter v BCI Finances Pty Ltd (in liq) [2015] FCAFC 122; (2015) 235 FCR 410
Harman v Secretary of State for the Home Department [1983] 1 AC 280
Hearne v Street [2008] HCA 36; (2008) 235 CLR 125
Liberty Funding Pty Ltd v Phoenix Capital Ltd [2005] FCAFC 3; (2005) 218 ALR 283
Springfield Nominees Pty Ltd v Bridgelands Securities Ltd (1992) 38 FCR 217
Date of hearing: 27 April 2016 Registry: New South Wales Division: General Division National Practice Area: Commercial and Corporations National Practice Sub-Area: General and Personal Insolvency Category: Catchwords Number of paragraphs: 78 Counsel for the Applicant: Mr A Spencer Solicitor for the Applicant: McLean and Associates Solicitors Counsel for the First Respondent: The first respondent appeared in person by telephone Counsel for the Second Respondent: Ms E Glover Solicitor for the Second Respondent: Goldrick Farrell Mullan Solicitors ORDERS
NSD 1657 of 2015 BETWEEN: ALAN RICHARD NICHOLLS IN HIS CAPACITY AS THE TRUSTEE IN BANKRUPTCY OF THE BANKRUPT ESTATE OF JOHN CHARLES HERTSLET
Applicant
AND: JOHN CHARLES HERTSLET
First Respondent
DOUGLAS JAMES HERTSLET
Second Respondent
JUDGE:
BROMWICH J
DATE OF ORDER:
3 JUNE 2016
THE COURT ORDERS THAT:
1.The second respondent pay the applicant’s costs of the interlocutory application as taxed or agreed.
2.Leave is granted to the applicant to discontinue the part of the application filed on 15 December 2015 brought against the second respondent.
3.The second respondent pay the applicant’s costs (including reserved costs) of the application filed on 15 December 2015 brought against the second respondent as taxed or agreed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
BROMWICH J:
Introduction
The applicant is the trustee in bankruptcy of the bankrupt estate of John Charles Hertslet (the Trustee). The first respondent is the bankrupt, John Charles Hertslet (John). John has no active part to play in the interlocutory proceedings at this stage, although he will be indirectly affected by the outcome.
The second respondent, Douglas James Hertslet (Douglas), is the brother of John and the executor of the estate of the late Marjorie Adline Matilda…
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- Nicholls v Hertslet [2016] FCA 655
- Case
- [2016] FCA 655
- Decision Date
CaseChat Overview and Summary
The court ruled that the implied undertaking did not extend to the Trustee in bankruptcy in relation to documents used for the administration of an estate. It further held that the Trustee's use of the documents without seeking leave was not justified as there were no special circumstances present. The court emphasised the importance of seeking leave before using such documents and the consequences of failing to do so. The court granted leave to discontinue the substantive proceedings but required the second respondent to pay the applicant's costs of the interlocutory application and any other costs of the substantive proceedings.
The final orders of the court were that the second respondent must pay the applicant’s costs of the interlocutory application as taxed or agreed. Additionally, leave was granted to the applicant to discontinue the part of the application filed on 15 December 2015 brought against the second respondent. The second respondent was also ordered to pay the applicant’s costs, including reserved costs, of the application filed on 15 December 2015 brought against the second respondent as taxed or agreed. These orders were to be entered in accordance with Rule 39.32 of the Federal Court Rules 2011.
Orders
Orders of the court
1. The second respondent pay the applicant’s costs of the interlocutory application as taxed or agreed.
2. Leave is granted to the applicant to discontinue the part of the application filed on 15 December 2015 brought against the second respondent.
3. The second respondent pay the applicant’s costs (including reserved costs) of the application filed on 15 December 2015 brought against the second respondent as taxed or agreed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
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