Re Watson, C.A. Ex parte Cunningham, K.J

Case [1993] FCA 278


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JUDGMENT No. ........ . ........ ........ .... als 1 \c193

IN 'rl-IE FEDERAL COURT O F AUS'I'RALIA
GENERAL DIVISION

BANKRUPTCY DISTRICT OF THE

No. ON572 of 1993

N - R

Resoondent

EX PAR'rE: KElTH JOHN CUNNINGHAM

Aodicant

JUDGE MAIUNG ORDER:  Cooper J.
WHERE MADE  Brisbane
DATE OF ORDER.  30 April, 1993

FEDERAL m U R 1
AUSTRALIA

PRINCIPAL REGISTRY

MINUTES O F ORDER

THE mum ORDERS:-

l .

That a warrant issue for the arrest of Craig Alexander Watson and that he be co~nm~tted to the Arthur Gorrie Correctional Centre, and that he be produced to the Federal Court at Brisbane at 9.15 am on Tuesday, 4 May 1993 and that he be held in custody until that time unless the court otherwise orders. I further order that the officer of the Australian Federal Police who executcs the warrant also seize any property, books, documents, paper< aiitl writ~ngs in the possession of Craig Alexander Watson and deliver those items into the custody of the Registrar of the Federzil Court at Brisbane, and that they be retained by him until the court makes an order as to their d~sposal.

That the application for the further relief be adjourned to 9.15 am on
Tuesday, 4 May 1993 for further n~cntion
Note: Settlement and entry of orders is dealt with Rule 124 of the Bankruptcy Rules.

That the costs of today's application be reserved.

IN THE FEDERAL COURT O F AUSTRALIA
GENERAL DIVISION
BANKRUPTCY DISTRICT O F TI-IE

STATE O F QUEENSLAND No. ON572 of 1993

RE: CRAIG ALEXANDER WATSON

Resnondent

0

Applicant

CORAM:  Cooper J.
PLACE:  Brisbane
DATE:  30 Apr11, 1993

EXTEMPORE REASONS FOR JUDGMENT

This 1s an appl~cation made by Kcith John Cunninghain for the issue of

a warrant for the arrest of Crag Alexander Watson pursuant to section 78 of the

Bankruntcv Act 1966.

I am satisfied on the material hefore me that in January, 1991 Watson

absconded from Australia with a view to avoiding payment of his debts or to prevent

or delay proceedings against him being taken under the Bankruptcv Act. A
bankruptcy notice has ~ssr~ed today on the application of Resi Statewide Corporation
Limited.

As appears from the aff~davit of Mr. Cunningharn, Watson left

substantial debts in Austral~a wli~ch he h:~s not paid. He has fa~led to contact Mr Cunningham, who was co-guarantor with him in relation to a number of those debts, in order to clear op the affairs of a company in which they were both interested, or,

to make arrangements to contribute undcr the goarantees.

I am alsu satisfied from the material before me that the presence of

Watson in Australia at the present time is only temporary he~ng for the purpose of

attending a funeral of a close relative and to qort out some personal affairs in relat~on

to the estate of that relative. I am sat~sfied that Watson will leave Australia once
those matters are completed.

I am satisfied that the conditions contained in section 78(l)(a) of the

Bankruptcv Act 1YGG have been made out and that a warrante to arrest Watson ought

to Issue.

There is a further application that I make orders that Watson surrender

his Australii~n and Amer~can passports to the Keg~strar and that he file an affidavit in
Court deposing to h ~ s usual address in the United States, h ~ s ources of income and
assets, etcetera. I am not prepared to make the two later orders on an e~ par!e basis.
THJ3 COURT ORDERS:-
1. That a warrant ~ssue for the arrest of Craig Alexander Watson and that

he be committed to the Arthur Gorrle Correctional Centre, and that he

be produced to the Federal Court at Brisbane at 9.15 am on Tuesday, 4

May 1993 and that he be held in custody until that tlme unless the court

othenv~se orders I further order that the officer of the Australian Federal Police who executes the warrant also seize any property, books,

documents, papers and writlngs in the possession of Cra~g Alexander

Watson and deliver those items into the c~rstody of the Registrar of the

Federal Court at Brisbane, and that they be retained by him unt~l the
court nlakes an order as to the~r disposal

That the application for the further relief be adjourned to 9.15 am on

Tuesday, 4 May 1993 for further mention

That the costs of today's appl~c:~tlon be reserved.

1 certify that this and the preceding two (2) pages are a truc copy of the reasons for judgment herein of his Honour Mr. Justice Cooper.

Date: 30 April, 1993 ~* ,rill[ f l J ~ ~ ~ ( C ~ c ~ ~ t t l f l
/ Associate
Counsel for the Applicant:  Mr. Morpn
Solicitors for the Applicint:  Halletts, Solicltors
Date of Hearing:  30 April, 1993
Place of Hearing:  Brlchane
Details
AGLC
Re Watson, C.A. Ex parte Cunningham, K.J [1993] FCA 278
Case
[1993] FCA 278
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, General Division, Bankruptcy District of the State of Queensland, the matter of Re Watson, C.A. Ex parte Cunningham, K.J was heard. Keith John Cunningham applied for a warrant to arrest Craig Alexander Watson, alleging Watson absconded from Australia in January 1991 to avoid paying his debts or to delay proceedings under the Bankruptcy Act 1966. The court was required to decide whether the conditions outlined in section 78(1)(a) of the Bankruptcy Act 1966 had been met, which would justify the issuance of an arrest warrant.

Cooper J found that Watson had indeed absconded from Australia with the intention of avoiding his debts and had failed to contact Cunningham, who was a co-guarantor for some of those debts. Watson was only temporarily in Australia for a relative's funeral and to settle the deceased's estate. The judge concluded that the conditions of section 78(1)(a) were satisfied, and a warrant should be issued for Watson's arrest. The court ordered that Watson be arrested and committed to the Arthur Gorrie Correctional Centre. Additionally, the officer executing the warrant was instructed to seize any property, books, documents, papers, and writings in Watson's possession, and deliver them to the Registrar of the Federal Court at Brisbane. The application for further relief was adjourned, and the costs of the application were reserved.

The court made the following orders: a warrant for Craig Alexander Watson's arrest was issued, and he was to be committed to the Arthur Gorrie Correctional Centre. Watson was to be produced before the Federal Court at Brisbane on Tuesday, 4 May 1993, and held in custody until further court order. Any property, books, documents, papers, and writings in Watson's possession were to be seized and delivered to the Registrar of the Federal Court at Brisbane for safekeeping. The application for further relief was adjourned to 9.15 am on Tuesday, 4 May 1993, for further mention. The costs of the application were reserved.

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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