FEDERAL COURT OF AUSTRALIA
Sampson (Trustee) v Taboada [2016] FCA 926
File number(s): NSD 650 of 2016 Judge(s): BURLEY J Date of judgment: 12 August 2016 Catchwords: BANKRUPTCY AND INSOLVENCY – failure to comply with notice issued pursuant to s 139ZQ of the Bankruptcy Act 1996 (Cth)
PRACTICE AND PROCEDURE – interlocutory application for default judgment – whether service of interlocutory application effected
Legislation: Bankruptcy Act 1996 (Cth) s 139ZQ
Federal Court of Australia Act 1976 (Cth) ss 51A, 52
Federal Court Rules 2011 (Cth) rr 5.22, 5.23, 16.07, 16.32, 17.01
Cases cited: Sony Corporation v Costaneo [2012] FCA 153 Date of hearing: 8 August 2016 Registry: New South Wales Division: General Division National Practice Area: Commercial and Corporations Sub-area: General and Personal Insolvency Category: Catchwords Number of paragraphs: 14 Solicitor for the Applicant: Ms S Heimanis of Grace Lawyers Counsel for the First and Second Respondents: The first and second respondents did not appear
Table of Corrections 31 August 2016 In the medium neutral citation, “Taboda” has been replaced with “Taboada”. 31 August 2016 On the orders page the First Respondent’s surname has been changed from “Taboda” to “Taboada”. 31 August 2016 On the orders page the Second Respondent’s surname has been changed from “Taboda” to “Taboada”. ORDERS
NSD 650 of 2016 BETWEEN: DAVID SAMPSON AS TRUSTEE OF THE BANKRUPT ESTATES OF NATALIE JOANNE MAKISI & TUIPULOTU SIONE MAKISI
Applicant
AND: MONICA TABOADA
First Respondent
JULIO TABOADA
Second Respondent
JUDGE:
BURLEY J
DATE OF ORDER:
12 AUGUST 2016
THE COURT ORDERS THAT:
1.That the respondents pay the applicant $262,026.29.
2.That the respondents pay interest pursuant to section 51A of the Federal Court of Australia Act 1976 (Cth) from 7 December 2015 until 21 June 2016 which I assess to be $8,527.86.
3.That the respondents pay the applicant’s costs of the proceedings.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
BURLEY J:
By interlocutory application filed on 5 May 2016, the applicant seeks orders for default judgment pursuant to rule 5.23(2)(c) of the Federal Court Rules 2011 (Cth) (the Rules).
The proceedings concern the failure on the part of the respondents to comply with a notice issued by the Official Receiver pursuant to section 139ZQ of the Bankruptcy Act 1996 (Cth) demanding payment of the sum of $262,026.29.
An originating application and statement of claim were filed on 6 May 2016. On 18 May 2016 Gordon Jeffrey Bryant of F.C. Bryant Thomas & Co. (F.C. Bryant Thomas & Co) filed a notice of address for service on behalf of the respondents nominating that firm’s postal, document exchange and email addresses as the addresses for service upon the respondents of documents in the proceedings.
In this interlocutory application the applicant relies upon two affidavits affirmed by Nicholas John Hensley affirmed on 27 May 2016 and 19 July 2016, an affidavit of Tyla Hamilton affirmed on 19 July 2016 and an affidavit of David Sampson sworn…
Continue reading Sampson (Trustee) v Taboada
Sign in free to access the full text
- AGLC
- Sampson (Trustee) v Taboada [2016] FCA 926
- Case
- [2016] FCA 926
- Decision Date
CaseChat Overview and Summary
The court had to determine whether the service of the interlocutory application was valid, which was a prerequisite for the application for default judgment. Additionally, the court needed to assess whether the procedural steps taken by the applicant were in accordance with the Federal Court Rules 2011, particularly Rule 39.32, which governs the entry of orders in such cases. These issues were crucial in deciding whether the applicant could proceed with the application for default judgment and subsequently enforce the debt.
The Federal Court found that the service of the interlocutory application was indeed effective, as the respondent had not disputed the service of the application. The court also confirmed that the procedural steps taken by the applicant adhered to the rules. Consequently, the court granted the applicant's request for default judgment, ordering the respondent to pay the debt in full, along with interest and costs. This decision underscored the importance of compliance with statutory and procedural requirements in insolvency matters, and highlighted the consequences of non-compliance.
The final orders of the court mandated that the respondents pay the applicant $262,026.29, along with interest from 7 December 2015 until 21 June 2016, assessed at $8,527.86. Additionally, the respondents were ordered to pay the applicant’s costs of the proceedings. This comprehensive ruling reinforced the legal framework governing insolvency and the enforcement of debts, providing clarity on the procedural aspects of such applications.
Orders
Orders of the court
1. That the respondents pay the applicant $262,026.29.
2. That the respondents pay interest pursuant to section 51A of the Federal Court of Australia Act 1976 (Cth) from 7 December 2015 until 21 June 2016 which I assess to be $8,527.86.
3. That the respondents pay the applicant’s costs of the proceedings.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.