Re Washington, H.J. v Ex parte Washington, H.J.

Case [1988] FCA 242


IN THE FEDERAL COURT OF AUSTRALIA )
GENERAL DIVISION
) QLD E45 of 1984
BANKRUPrCY DISTRICT OF THE SOUTHERN )
DISTRICT OF THE STATE OF OUEENSLAND )

RE: HONARD JOHN WASHINGTON

EX PARTE:  HOWRD J O H N WASHINGTON
FRANCES JAYE WASHINGTON
THOMAS  J O H N O'TOOLE
IAN ROBERT SKINNER

Applicants

C.S.R. LIMITED

Respondent - ..

MINUTES OF ORDER

All'

JUDGE MAKING ORDER:  PINCUS J.
DATE OF ORDER:  21 APRIL 1988
BRISBANE MADE: WHERE
THE COURT ORDERS THAT:
1. the application made on behalf of Frances Jaye

Washington, which has been filed in Court by leave, be treated as if it were also an application by

Rule 124 of the Bankruptcy Rules.
Howard John Washington, Thomas John O'Toole and Ian
Robert Skinner;
2 . the summons under 5.81 of the Bankruptcv Act 1966
issued at the request of C.S.R. Limited, dated 15
January 1988, be set aside in respect of each of
the four applicants; and
3 . the costs of the applicants of and incidental to
this application to set the summons aside be taxed
and paid by the respondent, C.S.R. Limited.
- NOTE : Settlement and entry of orders is dealt with in

.-

IN THE FEDERAL COURT OF AUSTRALIA )
GENERAL DIVISION
1 QLD E45 of 1984
BANKRUFTCY DISTRICT OF THE SOUTHERN )
DISTRICT OF THE STATE OF OUEENSLAND )
RE:  HOWARD JOHN WASHINGTON
M PARTE:  HOURD JOHN WASHINGTON
FRANCES JAYE WASHINGTON
THOMAS JOHN O'TOOLE
IAN ROBERT SKINNER

Applicants

C.S.R. LIMITED

Respondent

PINCUS J. 21 APRIL 1988

EX TEMPORE REASONS FOR JUM;MENT

In this matter I order that the application made on
behalf of Frances J. Washington, whlch has been flled in Court by
leave, be treated as if it were also an application by Howard John
Washington, Thomas John O'Toole and Ian Robert Skinner. I have
made that order to avoid the necessity of filing multiple

applications.

I order that the summons under s.81 of the Bankruptcy
&& 1966, issued at the request of C.S.R. Limited, dated 15
February 1988, be set aside in respect of each of the four
applicants. I order that the costs of the applicants of and

incidental to this application to set the summons aside be taxed

and paid by the respondent C.S.R. Limited. The remaining question

is the costs incurred by the proposed examinees in preparatory

work engaged in by Mr Harley in anticipation of the expected

examinations which will not, of course, take place. The point is

rather an unusual one. It is, I think, correct that as Mr Lobban
says, it is not the practice to award costs of lawyers' fees of
witnesses who are summoned to appear under 5.81.
Section 81(14), in effect, creates a statutory exceptlon

to that, but it does not apply so as to allow costs to be awarded

in these circumstances. The question is whether I should apply
the practice by analogy in this case in whlch, because of an

error, the proposed examination will not take place.

It seems to me that I should. The error whlch has been

made is, no doubt, regrettable, that has redounded to the beneflt

of the proposed examinees. Had the examinations proceeded, they

would have incurred more costs, which, had the ordinary practice

been applied, would not have been reimbursed.

I therefore do not propose to allow any further costs

than those I have already allowed, that is, the costs relating to

the application to set aside. f cert l fv t b a + V- : 2nd :I.E / Frcccdlng
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Details
AGLC
Re Washington, H.J. v Ex parte Washington, H.J. [1988] FCA 242
Case
[1988] FCA 242
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, General Division, the applicants Howard John Washington, Frances Jaye Washington, Thomas John O'Toole, and Ian Robert Skinner sought to have a summons issued by C.S.R. Limited set aside. The summons, issued under Section 81 of the Bankruptcy Act 1966, requested the examination of the applicants. Pincus J was tasked with deciding whether the summons should be set aside and, if so, whether the applicants were entitled to costs incurred due to the summons. The legal issues before the court involved the interpretation of Section 81(14) of the Bankruptcy Act 1966 and whether it allowed for the awarding of costs in circumstances where the summons had been erroneously issued but subsequently set aside.

Pincus J held that the summons under Section 81 of the Bankruptcy Act 1966 should be set aside in respect of each of the applicants. The court reasoned that it was not standard practice to award costs of lawyers' fees to witnesses summoned under Section 81, but Section 81(14) created a statutory exception. However, this exception did not apply to allow costs to be awarded in these circumstances. The court found that the error made by C.S.R. Limited, which led to the proposed examinations not taking place, was regrettable but did not warrant the reimbursement of further costs beyond those relating to the application to set aside the summons. The judge concluded that the applicants were entitled to have the summons set aside and to be reimbursed for the costs of the application itself, but not for any preparatory work undertaken in anticipation of the examinations.

The court ordered that the application made on behalf of Frances Jaye Washington be treated as if it were also an application by Howard John Washington, Thomas John O'Toole, and Ian Robert Skinner. It set aside the summons issued by C.S.R. Limited in respect of each of the applicants and ordered that the costs of the applicants of and incidental to this application be taxed and paid by C.S.R. Limited.

Orders

Orders of the court

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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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