Saint, Johnson & Ors, Ex parte - Re Macks

The High Court of Australia considered an application for special leave to appeal in *Saint, Johnson & Ors, Ex parte - Re Macks*. The applicants, Saint, Johnson & Ors, sought to appeal a decision of the Full Court of the Federal Court of Australia concerning the administration of the estate of the late Mr. Macks.

The central legal issue before the High Court was whether the Full Court of the Federal Court had erred in its interpretation and application of the *Bankruptcy Act 1966* (Cth) and the *Trustee Act 1925* (NSW) in relation to the distribution of assets from the bankrupt estate of Mr. Macks. Specifically, the court had to determine the priority of claims between the trustee in bankruptcy and certain beneficiaries of a discretionary trust established by the bankrupt.

The High Court granted special leave to appeal, indicating that there were substantial questions of law to be determined. The reasoning of the Full Court of the Federal Court, which had held that the trustee in bankruptcy had a claim over certain trust assets, was to be scrutinised. The High Court's ultimate decision would clarify the extent to which assets held within discretionary trusts are available to satisfy the claims of a bankrupt's creditors under Australian bankruptcy law, particularly in light of the interplay between federal bankruptcy legislation and state trust law.