Pattison v Official Trustee in Bankruptcy

In *Pattison v Official Trustee in Bankruptcy*, heard by Judge Burchardt, the applicant sought indemnity costs against the Official Trustee in Bankruptcy. The dispute arose from the Official Trustee's application to set aside a transfer of property from the bankrupt to the applicant.

The central legal issue before the court was whether the Official Trustee's conduct in bringing and pursuing the application to set aside the property transfer warranted an award of indemnity costs in favour of the applicant.

Judge Burchardt reasoned that indemnity costs are an exceptional remedy, typically awarded where a party has engaged in unreasonable or vexatious conduct. The court found that the Official Trustee's actions in this instance did not meet the high threshold required for such an award. The application to set aside the transfer was not considered to be frivolous or an abuse of process, and therefore, the usual order for costs would apply.

The court ordered that the Official Trustee pay the applicant's costs of the application to set aside the transfer, to be assessed on the ordinary basis.