Pellam and Valasco (No 2)

Case [2021] FCCA 1345


FEDERAL CIRCUIT COURT OF AUSTRALIA

Pellam & Valasco (No 2) [2021] FCCA 1345

File number(s): PAC 6127 of 2018
Judgment of: JUDGE NEWBRUN
Date of judgment: 18 June 2021
Catchwords: FAMILY LAW – Husband’s stay applications relating to Orders enforcing final consent property adjustment Orders – stay applications dismissed subject to one stay Order proposed by Wife
Legislation:

Federal Circuit Court Rules 2001 r 16.05(2)

Family Law Rules 2004 r 22.11(2)

Family Law Act 1975 (Cth) s 79A

Cases cited:

Aldridge & Keaton (Stay Appeal) [2009] FamCAFC 106

In the Marriage of Clifton and Stuart (1990) 14 Fam LR 511; (1991) FLC 92-194

Number of paragraphs: 61
Date of last submission/s: 15 June 2021
Date of hearing: 15 June 2021
Place: Parramatta
The Applicant Father appeared in person
Solicitor for the Respondent: Ms Bonthorne

ORDERS

PAC 6127 of 2018
BETWEEN:

MS PELLAM

Applicant

AND:

MR VALASCO

Respondent

ORDER MADE BY:

JUDGE NEWBRUN

DATE OF ORDER:

18 JUNE 2021

THE COURT ORDERS THAT:

1.That Order 1(e) of the Federal Circuit Court of Australia at Parramatta made on 28 January 2020 be stayed and the proceeds of sale be held in the trust account of the Wife’s solicitors Mathews Dooley & Gibson pending the determination of the appeal of Mr Valasco filed on 1 June 2021.

2.That the Application in a Case filed 2 June 2021 of the Husband is otherwise dismissed.

.Section 121 of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.

IT IS NOTED that publication of this judgment under the pseudonym Pellam & Valasco (No 2) is approved pursuant to s.121(9)(g) of the Family Law Act 1975 (Cth).

REASONS FOR JUDGMENT

JUDGE NEWBRUN:

INTRODUCTION

  1. This is the determination of the Husband’s Application for a stay of property related Orders made by this Court on 14 May 2021. This Application is resisted by the Wife subject to one Order, referred to below.

  2. Essentially, through the Husband’s present stay Applications, he seeks to remain living in the former matrimonial home (hereinafter referred to as the property) and avoid ejection, and seeks to avoid the property being sold pursuant to consent property adjustment Orders made on 28 January 2020.

    BACKGROUND

  3. On 28 January 2020, the parties, then legally represented, and appearing at Court, requested the Court to make property Orders in accordance with signed proposed consent Orders and the Court made Orders in accordance with those proposed consent Orders. Thereafter, the Wife instituted enforcement proceedings in accordance with those Orders, in view of the Husband refusing to leave the property, so as to allow the property to be sold in accordance with the Orders.

  4. The Court made enforcement related Orders, as sought by the Wife, ultimately leading to the Court issuing a warrant for possession and authorising an enforcement officer to eject the Husband from the property.

  5. The Husband then sought Orders from the Court seeking to set aside certain…

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Pellam and Valasco (No 2) [2021] FCCA 1345
Case
[2021] FCCA 1345
Decision Date

CaseChat Overview and Summary

In *Pellam and Valasco (No 2)*, Judge Newbrun of the Federal Circuit Court of Australia considered applications by the Husband for stays of orders made on 28 January 2020, which were consent orders for the adjustment of property. The Husband sought to remain in the former matrimonial home and prevent its sale, as directed by the earlier consent orders. The Wife, in response to the Husband's stay applications, sought a stay of a specific order concerning the proceeds of sale, pending the determination of the Husband's appeal.

The central legal issues before the Court were whether to grant the Husband's applications for stays of the property adjustment orders, and alternatively, whether to grant the Wife's application for a stay of the order relating to the proceeds of sale of the former matrimonial home. The Court was required to consider the principles governing applications for stays of judgments, particularly in the context of appeals, and to weigh the competing rights and interests of the parties.

The Court applied established legal principles for stay applications, noting that the onus rests on the applicant to establish a proper basis for the stay, though not necessarily special or exceptional circumstances. Key considerations included the entitlement of a party to the benefit of a judgment, the presumption of its correctness, and that the mere filing of an appeal is insufficient. The Court also considered the bona fides of the applicant, the balance of convenience, the risk of the appeal being rendered nugatory, a preliminary assessment of the appeal's strength, and the desirability of limiting changes to living arrangements.

The Court ordered that Order 1(e) of the Federal Circuit Court of Australia's orders of 28 January 2020 be stayed, with the proceeds of sale to be held in trust by the Wife's solicitors pending the determination of the Husband's appeal. The Husband's other stay applications were dismissed.

Orders

Orders of the court

THE COURT ORDERS THAT:

1. That Order 1(e) of the Federal Circuit Court of Australia at Parramatta made on 28 January 2020 be stayed and the proceeds of sale be held in the trust account of the Wife’s solicitors Mathews Dooley & Gibson pending the determination of the appeal of Mr Valasco filed on 1 June 2021.

2. That the Application in a Case filed 2 June 2021 of the Husband is otherwise dismissed.

.Section 121 of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.

IT IS NOTED that publication of this judgment under the pseudonym Pellam & Valasco (No 2) is approved pursuant to s.121(9)(g) of the Family Law Act 1975 (Cth).

Background

Background to the litigation

Essentially, through the Husband’s present stay Applications, he seeks to remain living in the former matrimonial home (hereinafter referred to as the property) and avoid ejection, and seeks to avoid the property being sold pursuant to consent property adjustment Orders made on 28 January 2020.BACKGROUND On 28 January 2020, the parties, then legally represented, and appearing at Court, requested the Court to make property Orders in accordance with signed proposed consent Orders and the Court made Orders in accordance with those proposed consent Orders. Thereafter, the Wife instituted enforcement proceedings in accordance with those Orders, in view of the Husband refusing to leave the property, so as to allow the property to be sold in accordance with the Orders. The Court made enforcement related Orders, as sought by the Wife, ultimately leading to the Court issuing a warrant for possession and authorising an enforcement officer to eject the Husband from the property. The Husband then sought Orders from the Court seeking to set aside certain enforcement related Orders, including the warrant for possession and ejection authorisation. The Husband was unsuccessful before the Court, and the Court on 14 May 2021 dismissed the Husband’s relevant Applications under, inter alia, section 79A of the Family Law Act 1975 (Cth) (“the Act”) and Rule 16.05(2)(a) of this Court’s Rules. The Wife, in relation to the current stay Applications, seeks an Order that Order 1(e) of the Court’s Orders of 28 January 2020 be stayed and the net proceeds of sale of the property be held in the trust account of the Wife’s solicitors pending the determination of the appeal of Husband filed on 1 June 2021. Otherwise, the Wife seeks the dismissal of the Husband stay Applications sought in his Application in a Case filed 2 June 2021.MATERIALS RELIED UPON The Husband relies upon:(a)His Application in a Case filed 2 June 2021;(b)His Affidavits filed 2 June 2021, 11 June 2021, and 14 June 2021. The Wife relies upon:(a)Her Response filed 9 June 2021;(b)Her Affidavit filed 9 June 2021.LEGAL PRINCIPLES The Husband relies on this Court’s power to order a stay of an order appealed from under Rule 22.11(2) of the Family Law Rules 2004. In Aldridge & Keaton (Stay Appeal) [2009] FamCAFC 106 at 17-18, and 36, it was stated:[17] This is an appeal from a discretionary judgment. There are well established principles on the limits on interference by an appellate Court with such a judgment (see House v The King (1936) 55 CLR 499; Gronow v Gronow (1979) 144 CLR 513; (1979) FLC 90-716).[18] The principles to be applied in determining an Application for a stay of Orders both in the general law and in respect of parenting proceedings are also well known (see The Commissioner of Taxation of the Commonwealth of Australia v Myer Emporium Limited [No.1] (1986) 160 CLR 220 at 222; Alexander v Cambridge Credit Corporation (1985) 2 NSW LR 685; Jennings Construction Limited v Burgundy Royale Investments Pty Limited (1986) 161 CLR 681; Clemett & Clemett (1981) FLC 91-013; JRN & KEN v IEG & BLG (1998) 72 ALJR 1329 at 1332). The authorities stress the discretionary nature of the Application which should be determined on its merits. Principles relevant to this matter include the following:•the onus to establish a proper basis for the stay is on the applicant for the stay. However it is not necessary for the applicant to demonstrate any “special” or “exceptional” circumstances;•a person who has obtained a judgment is entitled to the benefit of that judgment;•a person who has obtained a judgment is entitled to presume the judgment is correct;•the mere filing of an appeal is insufficient to grant a stay;•the bona fides of the applicant;•a stay may be granted on terms that are fair to all parties - this may involve a Court weighing the balance of convenience and the competing rights of the parties;•a weighing of the risk that an appeal may be rendered nugatory if a stay is not granted – this will be a substantial factor in determining whether it will be appropriate to grant a stay;•some preliminary assessment of the strength of the proposed appeal – whether the appellant has an arguable case;•the desirability of limiting the frequency of any change in a child’s living arrangements;•the period of time in which the appeal can be heard and whether existing satisfactory arrangements may support the granting of the stay for a short period of time; and•the best interests of the child the subject of the proceedings are a significant consideration.DISCUSSION

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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