Robert Whitton as Trustee in Bankruptcy Estate of Steven Leonard Watton v Watton

Robert Whitton, as Trustee in Bankruptcy of the estate of Steven Leonard Watton, sought leave to appeal from a costs order made by the primary judge. The dispute arose from an earlier interlocutory decision where the primary judge had granted relief extending a caveat over property owned by the trustee. The trustee wished to amend his application for leave to appeal to challenge the substantive order, despite having previously taken a different stance before the primary judge. The appeal was heard by McColl and Leeming JJA, and Sackville AJA.

The central legal issues before the Court of Appeal were whether the application for leave to appeal from the costs order constituted a "matter in bankruptcy" for the purposes of the Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth), and whether the trustee should be permitted to amend his summons to expand the grounds of appeal to include points inconsistent with his previous position.

The Court refused leave to amend the summons, finding that there was no question of principle or public importance, nor any reasonably clear injustice, that would warrant such an amendment. The Court also dismissed the summons seeking leave to appeal. The Court reasoned that the application for leave to appeal from a costs order, in the context of the underlying substantive dispute, did not amount to a "matter in bankruptcy" in a way that would engage the specific jurisdictional provisions relied upon.

Consequently, the Court ordered that leave to amend the summons be refused, the summons seeking leave to appeal be dismissed, and that the applicant pay 50% of the respondent’s costs in the Court of Appeal.